Samstag, 18. Juli 2009

Porsche

According to press reports, it's more and more likely that Wiedeking will step down from his post as Porsche's CEO. Apparently, his contract goes until 2012, and if he agrees to leave early, he would be able to claim a golden parachute worth more than 100 m €.

Now let me get this straight:

Here's a guy who was paid 80 m € last year because of Porsche's record profit caused by a huge bet on VW's share price. Then it all turned sour, and Porsche now desperately needs to be bailed out by VW and/or foreign investors. Yet if the owners want to get rid of him, they have to throw in another 100+ m €?

Why on earth did they give him a contract that entitles him to such a crazy sum in spite of screwing up?

(Though if I read the press reports right, they are speculating. They don't actually know what's in the contract. But I suppose we'll know soon enough if the number turns out to be true.)

Kommentare:

  1. I think that the explanation is easy.
    Let say you are in the the house building business at the time wwhen there is a big real-estate frenzy.
    From the owners standpoint you are the one,who is able to make insane summs of money after several years of stagnation.
    So,they will try to keep you with hugh summs of money (which from they standpoint only friction that they make to them).

    The basic issue is simply:they are not able to see the personal capability,so they just try to compensate the general porfitability.And many case it is just result of the favorable market.

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  2. I suppose he did a good job of running Porsche's car business itself. The insane thing is that they gave him a contract which rewarded him for the short-term effects of his Volkswagen gamble, and which apparently even lets him have a wonderful severance package as an after effect.

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