By Max Bernhard 
 

Volkswagen AG (VOW.XE) has revised the remuneration system for top management to more strongly focus on profitability targets and share price development, and cut personal-performance bonuses, the German car maker said Wednesday.

"In future the remuneration system will depend to a large extent on the success of the group. This will provide prospects of attractive bonuses in years of business success and will entail an immediate reduction in bonuses in times of crisis," Volkswagen said.

Under the new system, which is modeled on the remuneration structure of board members, group targets will account for at least half of the variable target remuneration, up from a third previously, Volkswagen said. The new system will also include options to reward "compliant, upright behavior" and to reduce or cut remuneration in case of individual wrongdoing, it added.

"If serious wrongdoing is identified at a later date, it will also be possible for the employer to require the repayment of bonuses which have already been received," it said.

Volkswagen said as part of the overhaul it scrapped personal performance bonuses in order "to strengthen team spirit."

The new remuneration system will apply from fiscal 2019, it said.

Write to Max Bernhard at max.bernhard@dowjones.com; @mxbernhard

(END) Dow Jones Newswires

December 19, 2018 05:20 ET (10:20 GMT)