BERLIN (Reuters) -Volkswagen's supervisory board agreed to tie managers' bonuses to the company's absolute net cash flow from 2024, as the carmaker moves to link strategic goals more closely to financial targets, its chief financial officer said on Thursday.
The net cash flow target replaces a previous metric of tying bonuses to the operating profit of Volkswagen (ETR:VOWG_p) and its Chinese joint ventures, CFO Arno Antlitz said in a post on LinkedIn.
The carmaker also planned to measure the performance of each of its brand's management boards against net cash flow goals, followed by the entire management team.
"All leaders should have skin in the game," he added.
Plans to alter management remuneration structures were first announced at the carmaker's capital markets day in June, where it said each of its brands would be given a set target for operating result, returns, net cash flow, cash conversion rate and investment ratio.