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Rewarding Failure - Volkswagen CEO To Receive $32 Million Pension
Submitted by Mike Krieger via Liberty Blitzkrieg blog,
Last week, I tweeted the following with regard to my prediction about what would happen to the Volkswagen CEO after pretty much destroying the company’s reputation due to the emissions cheating scandal:
CEO will be fired and receive a $150 million exit package with a new free car every year for life. https://t.co/YGVtp9blco
— Michael Krieger (@LibertyBlitz) September 18, 2015
It didn’t take long for crony capitalism to kick in. You know, where the most destructive and inept members of society are consistently rewarded for failure. Bloomberg reports the following:
Martin Winterkorn, engulfed by a diesel-emissions scandal at Volkswagen AG, amassed a $32 million pension before stepping down Wednesday, and may reap millions more in severance depending on how the supervisory board classifies his exit.
After Winterkorn disclosed Wednesday that he had asked the board to terminate his role, company spokesman Claus-Peter Tiemann declined to comment on how much money the departing CEO stands to get. Volkswagen’s most recent annual report outlines how Winterkorn, its leader since 2007, could theoretically collect two significant payouts.
Winterkorn’s pension had a value of 28.6 million euros ($32 million) at the end of last year, according to the report, which doesn’t describe any conditions that would lead the company to withhold it. And under certain circumstances, he also can collect severance equal to two years of “remuneration.” He was Germany’s second-highest paid CEO last year, receiving a total of 16.6 million euros in compensation from the company and majority shareholder Porsche SE.
While the severance package kicks in if the supervisory board terminates his contract early, there’s a caveat. If the board ends his employment for a reason for which he is responsible, then severance is forfeited, according to company filings.
Of course, we all know this isn’t going to happen. How do we know? Well this is how…
The supervisory board’s executive committee said in a statement Wednesday that Winterkorn “had no knowledge of the manipulation of emissions data,” and that it respected his offer to resign and request to be terminated. It also thanked him for his “towering contributions” to the company.
The annual report also mentions another piece of his pension: He can use a company car in the years that benefit is being paid out.
This is merely the latest example of the “heads I win, tails you lose” environment that protects corporate CEOs. In case you missed the following post published just last week:
United Airlines CEO Walks Away with $21 Million Exit Package After Resigning Due to Corruption Probe
Well of course you’re going to have income inequality when CEOs literally can’t lose, no matter how much they fail.
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Nice Gig!
Notice he did not take any shares???
Schadenfreudian slip ;-)
Looney
Anbody know where this was discoverd? A small lab in West Virginia!
Guess how long they've had this information? OVER A YEAR.
WHY did they wait so long to bring this out?
http://www.cnbc.com/2015/09/23/meet-the-man-who-uncovered-volkswagens-li...
Try two years. The study was completed in May of 2013.
CHEAT, And Thou Shalt Be Rewarded With Fiats $$$$$$$$$$'s ...
Of course he got his millions. It's why the Fed destroyed the middle class savings accounts. The Fed, EU, all of them are supporting this top 1% and it's why this top 1 % keep the pressure on the Fed and others to keep interest rastes at zero. For the rest of us, It's all Bullshit !!!
Can I please be his replacement?
I promise to fuck up the company only half as badly, and I'll do it for only HALF the price!
Nice slow pitched softball.
Rewarded for criminal activity that resulted in profits. Adjusted it a bit.
This is the bankster mentality that has infiltrated almost all aspects of culture today.
Fraud is rewarded and not prosecuted. Join the ranks of the fraudsters and get rich!
Even Germans are now part of the Free Shit Army
Winterkorn: "I dindu nuffin"
VW: "Here's your free money"
Jack Welsh is an asshole
Yeah, but he knew nothing about the fraud so he gets the E-ticket package. Seems fair.
What? Why are you looking at me like that?
And by the way, they don't give them that severance package because they like them, they give them that severance package to keep their damned mounths shut about all the OTHER dirt they've got on the company.
What would Hitler do?
Wouldn't worry about talking. Ha!
He would prolly just brush it off.
and who says we can't export our expertise to Euro
I hope when my surgeon neighbor chops off the wrong hand by mistake that his medical group will reward him with a generous bonus package as he heads out the door with loss of license.
It's only fair, right?
How about that engineer who designed that 5 story building that collapsed; he deserves a very sweet golden parachute when he resigns.
Why not?
I was always sort of surprised no one took out Lay or Skilling when they lost their entire pensions. Shows you how apathetic/weak/brainwashed our culture is. And yet some thugs will extinguish the life of a convensince store clerk for $55 bucks.
It's paradoxical!
In regard to similar in the United States, why not use that golden parachute money to pay for 'entitlements' to people that refused to get an education and/or refuse to show up to work with even a moderately decent attitude, and continue to undermine their own un or under-employed lives by buying goods not made by themselves and citizen compatriots. So many of whom are now so increasingly admiring of the government that hands out the monetary heroin of the government check.
I understand the concern of these huge figures but a WSJ article a few years ago highlighted the pennys that employee pay would increase if such payouts decreased.
Meanwhile, those seemingly small 'entitlement' payments go to a majority in this country - close to 71% of the budget. And this with an $18 trillion deficit, bogus non-market interest rates, and 4x - 5x that amoount in additional unfunded (and unfundable) future entitlement promises.
Work both ways but the amount 'per person' is almost meaningless. Its the much larger total that should be considered.
Rewarding failure: it's the New American Way. Now exported to Euroland.
Personally, I don't see what the big deal is. So he, or someone under him, lied about emission levels and how they measured them. Does the USSA punish liars in high places? Do we enjoy seeing Holder, Clinton, et al in their orange jumpsuits? Do we even care that they lied to us? At least no one has died due to this manipulation of emissions levels. It's not like VW put in faulty ignition switches that resulted in people dying, after all.
Aw come on guys, think about this poor guy. His severance package will probably only last him a few months. If he can't get a new job soon, with all his debt and monthly expenses he will probably have to start having a series of garage sales to make ends meet. Think of his deprivation when he has to lay off some of his domestic servants and put three or four condos or vacation homes up for sale while prices are weakening. Think of the humiliation!!
This is tragic, just tragic.
The elitist roll like the Goodfellas movie: Fuck you ,pay me.
Nice pension.
And VW lost how many €billions in the last couple days?
And we wonder why they do this shit with impunity. No downside. No jail.
Toss a few in jail, or on the street with nothing. Maybe things would change.
I'm laughing at myself now!
He still did a far better job than 98% of all america's corpos in fortune 500 combined
And these fuckers are getting far more than he does while screwing up far more than he did
Hopfully he gets cancer like the rest of the no good fucks...
... or at least uncontrolable diabetes that causes left leg loss and right eyes blindness. Might as well add impotance also.
150 million? chump change compared to the 200 mil james harden got for wearing addidas.
Instead of having to give up his wealth and thrown in jail.Maybe the case can be transferred to a U.S. Court in order to face justice.
US Justice is busy chasing the FIFA boys. Hey, was/is VW a FIFA advertiser? There might just be a link here. Hmmmm?
Are you referring to our DOJ, Devoid Of Justice?
Except when it comes to brown skinned people or foreign automotive companies...
This is America, we are not a nation of laws, justice, and equality.
Right out of the Loyd Blankfine, Jeffrey Imlett playbook!
Now the BS emissions problems are spreading to BMW and VW's fine was astronomical compared to GMs ingition fines that caused people to die.
Struggling American Car industrial protectionism. Bully tactics to keep the EU in line and on board
Currency war>>>Trade war>>>>>Real war. Pattern Familiar?
But, at any rate with auto-exec pay packages like this its no wonder the new cars price seems a tad exorbitant. FUCK THEM AND ALL THEIR NEW CARS AND THE SEAHORSE THEY RODE IN ON. lol. As long as people are stupid enough to pay it.......
Can't wait to LMAO at the first Apple car I see broke down on the side of the road knowing the idiot camped out for 3 days for his butt raping.
Pensions are earned throughout your tenure you dont lose it when you get canned. Sheesh.
Fair enough. Throw the rich fucker in jail.
You want change?
He's only been the president since April or May, I'm not surprised he gets a large package if he has to take the fall.
Volkswagen owners: Just keep this in mind the next time the dealer refuses a warranty claim.
his lord is Mammon and he is a good servant. hopefully his money will bring him misery for the rest of his life, but probably he just laughs at us from his big fucking castle.
It pays to fail.
When failure is baked into the cake, it pays to bake cakes.
If you are one of the 1% only!
This is the government employee moto..
Hell yeah!...I would of driven VW into the ground years ago with that kind of parachute
http://www.cnbc.com/2015/09/24/audi-porsche-rd-chiefs-vw-us-ceo-to-quit-reuters.html
Says it all.
They should have used a private email server.
I cannot afford VW (I drive a 15 year old citroen) so I don't feel guilty for his lavish pension schema and possible extra firing indemnities...
There is no penalty for crime.
There is no penalty for failure.
Everything that made our country great is gone.
See, the Perfect Example of Perfidy.
The guy in the real world would be kicked out on his fucking ass.
Sieg Heil, mein Fuhrer!
wrong title...
Rewarding Cheating. This guy was the ultimate "hands on" engineer technical manager. He not only knew about this but this had to have crossed his desk. He most definitely gave his permisssion to whatever underling assured him that it was a flawless cheat..no-one especially not the American, would ever suspect. Oops.
I don't think it will hurg Germany's reputation though. they are following in the footsteps of giants like Bayer, and its progenitor I.G. Farben of zyklone B infamy. Couple of billions in write offs and a couple of years of good end user deals all will be ok again.
this is nothing new, as long as the fox is allowed to provide security over the hen house, nothing will change.
Hmmmmm.
VW made cars that were smart enough to outwit .gov and get good milage, have good performance, be fun to drive, etc.
I'm not in favor of cars belching smoke like a coal burning power plant (ahem, electric cars...), but I have yet to see a late model VW doing so, either.
While I object to the million-dollar grab bag CEO culture in general, I'm no more upset about this guy's severance package that I would be about any other corporate clown.
In fact, I think I'm a little less upset. If I needed a new car, I would definitely be buying a VW before they "fixed" this "problem."
We don't have Chief Executives anymore. We have the Chief Execution Officer, whose job it is to fall on his sword anytime something goes wrong. The beauty of this system is that everybody is satisfied with a human sacrifice, so the company can go about its business undisturbed in any fundamental way. These guys are given a large retirement packages, because who wants to be thrown under the bus at the first sign of trouble?
It is a cyncial system, and we are left wondering who is really running these companies.
I'm not trying to excuse VW's conduct, just pointing out a pattern that isi all too obvious.
vw had the nerve to challenge the globalist warming cult with fuel efficient vehicles.
ridiculous that many 1980's vehicles had mpg higher than today's plastic pieces of sh-t
I'd like to hear what the head padre traipsing all over Washington, NY, Philly, etc has to say about being rewarded for failure, causing misery, causing deaths like GM, and stuff like that. I mean, from a papal standpoint since a lot of people listen to him.
I have seen many VW TDI vehicles on the road and in every case the exhaust has no visible smoke or soot. I guess da E.P.A. is protecting us dumb ass Muricans from magic pollution. I appreciate this, please raise my taxes. I sure hope da E.P.A. stays open and continues protecting us during the gubermit shutdown.
Yup.
I suppose you want lead back in your gasoline since you can't see it ,or you also don't like catalytic converters.Corporations are lazy innovators unless they are forced to meet new standards.Years later they admit the regulations benefited their industry .