Volkswagen's Former CEO, Former Audi CEO to Pay Compensation Over Emissions Scandal

By Kim Richters

Volkswagen AG said Wednesday that former executives including its former chief executive officer would settle claims connected to the car maker's diesel scandal as part of a 288 million-euro($350 million) agreement.

Former Volkswagen CEO Martin Winterkorn and former Audi CEO Rupert Stadler agreed to compensate the car maker in relation to the scandal that erupted in 2015. Mr. Winterkorn agreed to pay 11.2 million euros and Mr. Stadler agreed on compensation of EUR4.1 million.

Volkswagen said Mr. Winterkorn had breached his duties of care as former CEO when he failed to "comprehensively and promptly clarify the circumstances behind the use of unlawful software functions" in some diesel-engine cars between 2009 and 2015. Mr. Stadler also breached his duties, it said.

Volkswagen will also receive EUR270 million from its directors-and-officers liability insurance.

The payments are related to Volkswagen's investigation into the causes of the diesel emissions fraud that cost the company billions.

The supervisory boards of Audi and Porsche AG also examined the probe results and reached an agreement with the former member of the board of management of Audi, Stefan Knirsch, for EUR1 million and with former Porsche board member Wolfgang Hatz for EUR1.5 million.

Volkswagen said it didn't reach an agreement with former member Audi management board member Ulrich Hackenberg and its Audi subsidiary was preparing legal steps.

Write to Kim Richters at [e-mail]

(END) Dow Jones Newswires

June 09, 2021 07:58 ET (11:58 GMT)

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