45 Remuneration of the Board of Management and the Supervisory Board

The non-performance-related remuneration of the Board of Management comprises fixed remuneration and fringe benefits. In addition to the basic level of remuneration, the fixed remuneration also includes differing levels of remuneration for appointments assumed at Group companies. In addition, Mr. Diess received €5,000,000 and Mr. Renschler received €11,478,000 as compensation for the loss of benefits due to the change of employer. The fringe benefits result from the grant of noncash benefits and include in particular the use of operating assets such as company cars and the payment of insurance premiums. Taxes due on these noncash benefits were mainly borne by Volkswagen AG. The performance-related remuneration comprises a business performance bonus, which relates to business performance in the reporting period and in the preceding year, and, since 2010, a Long-Term Incentive (LTI) plan, which is based on the reporting period and the previous three fiscal years. Members of the Board of Management can also be awarded bonuses that reflect their individual performance.

The performance-related remuneration measured in accordance with German GAAP includes the amounts withheld from the active Board of Management members whose disposal is subject to the Company’s future share price performance. These are reported at their fair value of €4,218,566. The amount withheld led to the creation of 50,703 virtual preferred shares.

On December 31, 2015, the pension provisions for members of the Board of Management in accordance with IFRSs amounted to €86,601,704 (previous year: €138,046,434). Current pensions are index-linked in accordance with the index-linking of the highest collectively agreed salary insofar as the application of section 16 of the Gesetz zur Verbesserung der betrieblichen Altersversorgung (BetrAVG – German Company Pension Act) does not lead to a larger increase.

Members of the Board of Management were paid interest-free advances in the amount of €175,000 (previous year: €480,000 ), which will be set off against performance-related remuneration in the following year.

Former members of the Board of Management and their surviving dependents received €51,306,960 (previous year: €22,792,616). This includes the amounts agreed to be paid to Messrs. Östling, Winterkorn, Klingler and Pötsch in connection with their departure from the Board of Management. Mr. Östling received non-performance-related remuneration of €567,885 and performance-related remuneration of €1,612,398 for the period from March 1 to August 31, 2015. Non-performance-related remuneration of €2,588,241 and performance-related remuneration of €6,691,011 for the period from September 26, 2015 to December 31, 2016 was recognized for Mr. Winterkorn. Taking into account the two-year cap to be applied, Mr. Klingler received non-performance-related remuneration of €2,435,488 and performance-related remuneration of €11,937,939 for the period from September 26, 2015 to December 31, 2017. Mr. Pötsch received non-performance-related remuneration of €3,015,800 and performance-related remuneration of €12,283,669 for the period from October 8, 2015 to December 31, 2017. The amount was granted net of Supervisory Board remuneration received in the period up to December 31, 2017.

Pension provisions in accordance with IFRSs for former members of the Board of Management amounted to € 242,675,809 (previous year: €165,668,945).

The individual remuneration of the members of the Board of Management and the Supervisory Board is explained in the remuneration report in the management report. A comprehensive assessment of the individual bonus components of the LTI is also to be found there.