Volkswagen made $28.5-billion in profit in 2012 but has decided to cut its CEO's bonus by $3.8-million.
Volkswagen has decided to buck a recent global trend and slash bonuses for its top executives, including CEO Martin Winterkorn, despite record 2012 profits.
The bonus-bashing decision from the VW supervisory board came on the heels of a recent public outcry over what Germans see as unjustifiable rewards for its nation's CEOs, this according to a recent Deutsche Welle report.
In 2012 alone, Volkswagen sold over nine million cars worldwide, amassing a record-breaking $28.5-billion in profit. These figures represent a 40.9-percent sales increase year-to-year.
Despite having its best year ever, Winterkorn will only receive $19.2-million in bonuses for 2012, down from $23-million in 2011. VW executives as a whole received $70-million in bonuses in 2011 and will only receive $56-million this year.
Just this week, Volkswagen unveiled a slue of models set for debut at next month's Geneva Auto Show. Most of the new models are based upon the Mk 7 Golf, including the e-Golf and the GTD. Perhaps most distinctive of all new VW offerings is the XL1, a compact diesel plug-in hybrid capable of an estimated 261 miles-per-gallon.
Based upon its 2012 sales figures and its ever increasing and diversified portfolio, Volkswagen aims to "out perform the market as a whole in a challenging environment."
Volkswagen aims surpass both General Motors and Toyota by 2018, becoming the world's largest automaker. The German automaker is off to a rough start in its home continent for 2013, however, as January saw a 20-percent sales decrease in Europe while sales in China appear to soar.