Volkswagen to replace bonus system with new performance model from 2027
Volkswagen is preparing a major overhaul of its employee performance and compensation framework, with plans to eliminate its current bonus system from 2027 as part of a broader corporate transformation, according to a report published by Germany's Bild newspaper.
The changes are expected to form part of the automaker's wider effort to reshape its corporate culture and modernize the way management performance is assessed across the organization.
Bonus system to be replaced
Under the reported plan, Volkswagen will discontinue its existing variable bonus structure beginning in 2027.
The company is expected to introduce a redesigned performance evaluation model intended to better align incentives with its long-term strategic objectives. The overhaul reflects a broader shift in how Europe's largest carmaker intends to recognize and reward managerial performance.
Star-rating system planned for managers
According to the report, Volkswagen plans to assess managers through a new star-rating system, replacing elements of the current compensation approach.
The revised framework is designed to support a cultural transformation within the company by introducing a different method of evaluating leadership performance and professional development.
While specific details of the rating criteria have not yet been disclosed, the initiative is expected to become a central component of Volkswagen's management strategy from 2027 onward.
Part of a wider corporate transformation
The reported compensation reforms come as Volkswagen continues to adapt its organizational structure and business strategy in response to rapid changes across the global automotive industry, including the transition toward electric mobility, increasing competition and evolving market demands.
By redesigning its performance management system, the company appears to be seeking stronger alignment between leadership accountability, organizational culture and long-term business priorities.
Volkswagen has not publicly confirmed the details of the reported changes.
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