According to Reuters, VW will keep paying former CEO Martin Winterkorn for another year when the contract will expire.

According to Reuters, VW will keep paying former CEO Martin Winterkorn for another year when the contract will expire.

It was in September when Martin Winterkorn resigned within a week after news emerged about cheating during the emissions tests in United States. Now, sources close to VW are saying the supervisory board has decided to continue making payments until the contract’s due date on December 31, 2016. Although this sounds very strange, there’s a logical explanation behind this decision.

If Winterkorn would have been fired, VW would’ve had to disburse millions of dollars in severance payments. The total amount he was eligible for would have been higher than the remaining salary he has to be paid until the end of next year. Winterkorn was “kind enough” to resign after reaching an agreement with the supervisory board to continue receiving his normal salary as if he still was the CEO.

After almost nine years as VW’s CEO, 68-year-old Martin Winterkorn amassed a pension pot of almost $31 million. Just last year he earned approximately $17.3 million and that made him the highest-paid among CEOs from companies that are listed in the DAX-30 blue-chip index in Germany.

A company spokesman contacted by Reuters did not wish to discuss the subject, while Winterkorn through his law firm was not available to talk about the delicate matter.

Source: Reuters via europe.autonews.com

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