German court acquits VW managers in overpayment case: report

A spokesman for the court said judges in Brunswick did not find that the accused knowingly acted “contrary to the duty and to the detriment of the company”.


VW announced in 2017 that it would change its payment structure

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VW announced in 2017 that it would change its payment structure

A German court on Tuesday acquitted four former and current Volkswagen managers who were accused of paying more than nearly five million euros ($5.9 million) to workers’ representatives. A spokesman for the court said judges in Brunswick, near the car giant’s Wolfsburg headquarters, did not find that the accused knowingly acted “contrary to the duty and to the detriment of the company.”

Two former board members as well as a former manager and a current one were accused of breach of trust in the case in November 2019.

Prosecutors allege that between 2011 and 2016 the four awarded “excessive” salaries and bonuses to five members of Volkswagen’s powerful Works Council, which represents employees at the company.

According to prosecutors, the accused did not use accurate calculations and spent VW 5.1 million euros in overpayments.

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According to prosecutors, the accused did not use accurate calculations and spent VW 5.1 million euros in overpayments.

The judges however disagreed, with a court spokesman saying the court heard that the suspects had sought “external and internal guidance” before deciding on a pay package.

Among those reportedly overpaid was former council chairman Bernd Osterloh, often described as one of the company’s most powerful people before his departure last April.

VW announced in 2017 that it would change its payment structure and put a cap on remuneration for executives.

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The overpayment case was not related to the Volkswagen “Dieselgate” emissions fraud scandal, which is still causing more than six years of legal headaches and 30 billion euros in damages, refunds and court fees later.

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