VW scraps bonuses for supervisory board

BERLIN -- Volkswagen plans to scrap bonus payments for members of its supervisory board, it said on Thursday, the latest sign of belt-tightening as the German carmaker grapples with the cost of sweeping emissions violations.

Supervisory board members have agreed to accept only fixed salaries in the future and scrap bonuses, a spokesman said, citing a proposal by the 20-strong board that has yet to be approved by the annual shareholders' meeting on May 10.

Under the proposal, the chairman will be paid a fixed salary of $317,400 (300,000 euros), with his deputy getting 200,000 euros and members 100,000 euros, the spokesman said, confirming a report earlier on Thursday by Germany's Bild newspaper.

Volkswagen became the target of fierce criticism from the German public and some shareholders last year after its managers only reluctantly accepted a cut in bonus payments of about 30 percent. Bonuses were based partly on VW's performance over the previous two years.

Last month, the board announced steps to cap total compensation for top management. Bonuses for VW's top executives will stay in place, though eligibility for variable compensation will be tightened under the new rules.