Former VW CEO Herbert Diess Receives EUR24 Million in Compensation Over Two Years Despite Dismissal

Volkswagen, one of the world's largest automotive manufacturers, is currently undergoing significant restructuring measures, including plans to reduce expenditures by EUR4 billion annually and potentially cut around 35,000 jobs by 2030. Despite these cost-saving initiatives and ongoing challenges such as the recent semiconductor shortage, recent financial disclosures reveal that former CEO Herbert Diess received approximately EUR24 million in compensation during the two years following his departure from the company's top position.

Herbert Diess, who served as CEO until 2022, was removed from his role in the summer of that year, following reported internal disagreements with employee representatives regarding his aggressive cost-cutting strategy. After his departure from the executive board, Diess continued to receive payments as part of an existing agreement, which included a consulting arrangement. According to Volkswagen's annual reports, Diess was the highest-earning executive associated with the company during this period, despite no longer holding an active leadership position.

The company's financial statements clarify that Diess's contract remained valid until its scheduled expiration date, meaning that, although he was not granted a severance package, he continued to receive his regular contractual remuneration. This arrangement allowed him to earn substantial sums, including almost EUR11.2 million last year, which comprised both pension contributions and multi-year variable compensation. Volkswagen confirmed that Diess made himself available to the company in an advisory capacity, but did not provide further specifics regarding the extent of his involvement.

In contrast, Diess's successor, Oliver Blume, received a total compensation of approximately EUR10.3 million in the same period, as indicated in Volkswagen's annual report. Notably, Blume's remuneration is set to be reduced significantly from 2026 onward, as part of broader executive pay reforms at the company.

After leaving Volkswagen, Diess has maintained a relatively low public profile. He has taken on new responsibilities, including serving as chairman of the supervisory board at Infineon, a prominent semiconductor manufacturer. Additionally, he has become involved in a range of entrepreneurial activities in Spain, such as hotel management, cattle farming, and pear brandy production.

As of the end of his contractual period with Volkswagen, Diess is now eligible to receive retirement benefits from the company. The circumstances surrounding his compensation package have attracted public attention, especially in light of Volkswagen's ongoing efforts to reduce costs and restructure its workforce.

The revelation of these compensation figures comes at a time when Volkswagen is navigating a complex environment marked by supply chain disruptions and evolving market conditions. The company is implementing significant organizational changes, including leadership transitions and adjustments to executive pay, as part of its strategy to remain competitive within the global automotive sector.