A few weeks ago, Andreas Renschler celebrated his 62nd birthday. It was a very special birthday for the Volkswagen truck boss. Because since March 29, he has been entitled to a gigantic VW pension of around 2000 euros a day! From now on he could collect this sum until the end of his life, for example if he no longer felt like his job tomorrow. The pension madness emerges from the current annual report of the group.
There, on page 84, on the subject of remuneration, it says: “In the event of regular termination of their duties, the members of the Executive Board are promised a retirement pension including survivor benefits and the use of company cars for the duration of the retirement pension. The promised benefits are paid or made available upon reaching the age of 63. Deviating from this, Mr. Renschler has the option of receiving his retirement pension after he has reached the age of 62. “
The pension for members of the Board of Directors is calculated from the basic salary, i.e. without bonus payments. The group report states: “The maximum limit set by the Supervisory Board is 70%. (…) Mr. Renschler had a pension entitlement of 70% of his fixed salary at the end of 2019. “
VW did not want to give a specific sum on request. The renowned compensation expert Heinz Evers examined the Renschler case for business insiders. According to Renschler, the basis for the pension is the basic salary that he received when he took office in early 2015: 1,056,000 euros. 70 percent of this is 739,200 euros per year, which is 2025 euros per day. Leader among the top retirees are ex-VW boss Martin Winterkorn (3,100 euros per day) and ex-Daimler boss Dieter Zetsche (4,200 euros per day).
VW paid him a premium of 11.5 million euros for his move from Daimler
At the beginning of 2014, Renschler left his long-time employer Daimler and moved to Volkswagen as a board member for trucks. Due to a ban on competition, he was only allowed to take up this job in February 2015. Because the then VW supervisory board boss Ferdinand Piëch absolutely wanted the manager, Volkswagen paid him an extra premium of 11.5 million euros. However, this may also be a compensation for his Daimler pension scheme.
In any case, Renschler must have negotiated well. Because he not only gets his pension earlier than all other top managers, VW also makes a huge sum for his pension every year. According to the 2019 annual report, the “pension expense” was around 5 million euros last year and thus even higher than the salary. Because including bonuses, Renschler collected around 4.5 million euros in 2019. Together, the group spent around 9.5 million euros on its truck boss.
The highly paid manager is an important pillar in the group. He formed the truck investments for the subsidiary Traton, brought them to the stock exchange in 2019 and thus flushed billions into the VW cash register.
Apparently Renschler currently has no intention of claiming the pension. A contract spokesman said his contract would run until 2024. But the group also confirmed: If he wanted, Renschler could stop immediately and collect his mega pension.