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Former Volkswagen boss to pay firm $13 million over diesel scandal

FILE - In this Nov. 30, 2018 file photo Martin Winterkorn, former CEO of the German car manufacturer 'Volkswagen', arrives for the annual general meeting of FC Bayern Munich soccer club in Munich, Germany. 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. The company said in a statement Wednesday, June 9, 2021 that an investigation showed former CEO Martin Winterkorn failed to get to the bottom of the scandal quickly after regulators started asking questions, and didn't ensure truthful answers to the inquiries. (AP Photo/Matthias Schrader, file) FILE - In this Nov. 30, 2018 file photo Martin Winterkorn, former CEO of the German car manufacturer 'Volkswagen', arrives for the annual general meeting of FC Bayern Munich soccer club in Munich, Germany. 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. The company said in a statement Wednesday, June 9, 2021 that an investigation showed former CEO Martin Winterkorn failed to get to the bottom of the scandal quickly after regulators started asking questions, and didn't ensure truthful answers to the inquiries. (AP Photo/Matthias Schrader, file)

By David McHugh / AP Business Writer June 9, 2021 2 min read

FRANKFURT, Germany (AP) – Former Volkswagen 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 2015 scandal over diesel engines rigged to cheat on emissions tests, the company said Wednesday.

Winterkorn’s payment is his share of an overall 288 million-euro settlement with Volkswagen by him and three other former managers.

Volkswagen said it would get 270 million euros ($329 million) from liability insurance against loss from the actions of directors and officers.

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.

More than 30 insurers were also involved in the talks, the dpa news agency reported. The settlement must be approved by the company’s annual shareholder meeting July 22.