45 Remuneration of the Board of Management and the Supervisory Board

NON-PERFORMANCE-RELATED REMUNERATION

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, Ms. Hohmann-Dennhardt received €6.3 million (previous year: Mr. Diess received €5.0 million and Mr. Renschler €11.5 million) to compensate for lost entitlements resulting from a change in 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.

PERFORMANCE-RELATED REMUNERATION

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.

At its meeting on April 22, 2016, Volkswagen AG’s Supervisory Board accepted the offer made by the members of the Board of Management to withhold 30% of the variable remuneration for fiscal year 2015 for the Board of Management members active on the date of the resolution and to make its disposal subject to future share price performance by means of phantom shares. 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 in 2015 of €4.2 million. Expenses of €0.8 million were recognized because of the share price performance in the period up to December 31, 2016. In accordance with German GAAP, these did not constitute remuneration. Furthermore, Mr. Pötsch’s waiver of a portion of his variable remuneration for fiscal year 2015 generated income of €2.3 million that has no impact on the remuneration disclosed for the reporting period. In its meeting on February 24, 2017, the Supervisory Board accepted Mr. Blessing’s offer to irrevocably relinquish the topup amount of €512.5 thousand for fiscal year 2016 to reach the minimum remuneration. The waiver lowered the performance-related remuneration according to German GAAP of the current fiscal year.

PENSION ENTITLEMENTS

On December 31, 2016, the pension provisions for members of the Board of Management in accordance with IFRSs amounted to €113.5 million (previous year: €86.6 million). 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 €– million (previous year: €0.2 million), 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 €11.1 million (previous year: €51.3 million). The figures for the previous year include amounts agreed to be paid to Mr. Östling, Mr. Winterkorn, Mr. Klingler and Mr. Pötsch in connection with their departure from the Board of Management.

Pension provisions in accordance with IFRSs for former members of the Board of Management amounted to €270.0 million (previous year: €242.7 million).

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 can also be found there.