Volkswagen says the executive in charge during the company’s diesel scandal will pay the firm 11.2 million euros ($13.6 million) in compensation
FRANKFURT, Germany — Volkswagen said Wednesday that former CEO Martin Winterkorn has agreed to pay 11.2 million euros ($13.6 million) in compensation for what the company called his failure to quickly get to the bottom of the scandal over diesel engines rigged to cheat on emissions tests.
The German automaker also said it would be receiving 270 million euros ($329 million) from liability insurance against loss from the actions of directors and officers.
The company said in a statement that Winterkorn “breached his duties of care” as CEO, based on an extensive investigation by a law firm commissioned by the company.
The investigation found that from July 27, 2015, Winterkorn failed “to comprehensively and promptly clarify the circumstance behind the use of unlawful software functions” in 2.0-liter diesel engines sold in the U.S. from 2009 to 2015.
The company said Winterkorn also failed to ensure that the company answered questions from U.S. regulators “truthfully, completely and without delay.”
Settlements were also reached with other former VW executives. Under the agreements, Rupert Stadler, former head of the Audi luxury car division, would pay 4.1 million euros, former Audi executive Stefan Knirsch 1 million euros and former Porsche executive Wolfgang Hatz 1.5 million euros. Porsche is a part of the Volkswagen Group.