Volkswagen (VW) shareholders have been advised to oppose both the company’s dividend proposals and a vote of confidence in its management by an investor advisory firm. The firm, Institutional Shareholder Services, is advising VW on how it can avoid having to pay out dividends for at least two years after being forced into administration last month.
Volkswagen (VW) shareholders have been advised to oppose both the company’s dividend proposals and a vote of confidence in its management by an investor advisory firm. PIRC believes that VW’s board has failed to address a range of corporate governance issues at the company, including the "overlap of major shareholders and controlling functions, a remuneration structure excessively linked to sales, the absence of a whistle blowing system and an apparently inefficient internal audit system".