July 19, 2009
Porsche chief to get $140M parachute
golden parachute ever given a European executive awaits Porsche chief Wendelin Wiedeking, The Sunday Times of London reported.
Without naming sources, the newspaper reported that should Volkswagen complete a purchase of the debt-burdened German sports car maker, Wiedeking would stand to collect $140 million in payouts, dwarfing the previous parachute record of $82 million awarded former Daimler chief Jurgen Schrempp in 2005.
The newspaper said the deal is proving controversial at a time when such king-sized bonuses and severance payments to corporate leaders are drawing the scorn of governments worldwide, who blame them for encouraging short-sighted business policies that are partly responsible for the global economic crisis.
Wiedeking is reportedly expected to offer his resignation Thursday at a company meeting in Stuttgart, when the Sunday Times says supervisors will make clear their intent to become part of Volkswagen in an $11.3 billion deal.