Yahoo Finance Volkswagen postpones decision on CEO's demands
Volkswagen’s (VOW.DE) executive committee deferred decision on extending contract of chief executive Herbert Diess during its meeting on Tuesday (1 December).
Reuters reported earlier this week that Diess had asked for a vote of confidence. The report cited sources as saying that key stakeholders were against an early extension of Diess’s contract, which ends in 2023.
“The executive committee will not be pressured into a decision, there is no rush,” a person familiar with the situation told Reuters.
Diess joined Volkswagen in 2015. In June, VW removed him as CEO of the Volkswagen brand and replaced him with chief operating officer Ralf Brandstätter. Diess is chief executive of the VW Group, which owns Audi, Skoda, Porsche, Lamborghini and Bentley.
“The families continue to support Diess,” a spokesman for Porsche Automobil Holding, which has a majority voting stake in VW, said on Tuesday before the meeting.
WATCH: VW replaces Herbert Diess as CEO of VW brand
Reuters reported earlier this week that VW’s supervisory board chairman Hans Dieter Pötsch was keen to find ways to avoid a leadership crisis at the carmaker.
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Diess topped the list of Germany’s highest paid CEOs on the German DAX last year, earning €9.9m (£8.9m, $11.9m).
He has been a driving force in transforming the Wolfsburg-based car company into an electric carmaker, and has reportedly been pushing to put managers on the board who he thinks would be better at pushing the electric and tech transformation further.
In a November op-ed, he said Volkswagen still had “old, encrusted” structures that must be broken up.
