Due to embezzlement: court of the main proceedings against four VW Manager

The regional court of Braunschweig has approved an indictment against three former and one current VW-Manager for allegedly excessive payment of works councils.

Due to embezzlement: court of the main proceedings against four VW Manager

The regional court of Braunschweig has approved an indictment against three former and one current VW-Manager for allegedly excessive payment of works councils. The main procedure because of the suspicion of infidelity or infidelity in a particularly heavy case had been opened, told the court on Tuesday.

the employers and the works Council are in League with VW's traditionally tight –in the case of the payment of high employee representatives in the opinion of the law officers to closely. The Braunschweig Prosecutor's office had accused the Manager therefore. The accusation of infidelity in a particularly serious Form, in connection with the alleged grant of excessive salaries and bonuses.

"The indictment against two former Executive Board members and a former and a current staff Manager of Volkswagen AG", - stated in the message of the court. The defendants are said to have approved excessive salaries and bonuses to five members of the works Council. As a result, the group between may 2011 and may 2016, more than five million euros had been incurred, the Prosecutor's office. Therefore, to have alone amount to the "unjust compensation" to the works Council chief Bernd Osterloh to 3,125 million euros.

conflict with the German stock Corporation act the "German Corporate Governance code"

The topic is of concern to the group and the lower Saxony justice already for 2016 – Volkswagen-thought-out, to be able to lay it even with the help of an arbitration procedure actually already the files.

VW had dismissed the indictment in November of 2019, a part of the responsibility. You hold to the view that the remuneration of individual works Council members are "no criminal behavior, and one relevant to fail" could be identified, stressed a company spokesman at the time. The prosecution, judge, also, not against Volkswagen, but against individuals.

Higher-than-average salaries of high works Council members are not specified in many of the companies precise. Basic rules of works Constitution law on compensation also apply, therefore, in need of reform –so the question is, what are your salary to apply to corridors for management tasks provides. It is, therefore, a General framework, which also hold some lawyers and trade unionists for part outdated and make it difficult to determine compensation.

Updated Date: 28 July 2020, 17:19

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