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Car Industry

Volvo Backs Down on Bonuses

Published onsdag 4 mars 2009 kl 13.04

Volvo is backing down over the controversial bonuses to the management. At a meeting on Wednesday the board decided to scrap a disputed proposal to give bonuses to 250 of the most senior Volvo managers.

“Our proposal has caused such a debate both internally and externally that it has disturbed working relations within the company,” Volvo CEO Finn Johnsson said to Swedish news agency TT.

According to Johnsson, the board had not anticipated such a reaction to their proposal.

“One might just conclude that the financial situation has deteriorated badly in a month and that the debate since then has become emotional and critical”, Johnsson said.

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