48 Remuneration of the Board of Management and the Supervisory Board

NON-PERFORMANCE-RELATED REMUNERATION OF THE BOARD OF MANAGEMENT

The non-performance-related remuneration of the Board of Management comprises fixed remuneration and fringe benefits. In addition, Mr. Duesmann was granted compensation of lost entitlements in the amount of €7.3 million due to the change of employer. The fringe benefits result from noncash benefits granted 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 AND LONG-TERM INCENTIVE COMPONENT OF THE BOARD OF MANAGEMENT

Performance-related remuneration includes the annual bonus with a one-year assessment period. The long-term incentive component contains the long-term incentive (LTI) in the form of a performance share plan with a forward-looking three-year term. For details on performance share plans for members of the Board of Management, please refer to the information in the section entitled “Remuneration based on performance shares and phantom shares (share-based payment)”.

Advances granted to members of the Board of Management under the performance share plan amounted to €6.5 million as of December 31, 2020 (previous year: €12.3 million). In the fiscal year, a total of €4.3 million (previous year: €– million) of the advances paid to members of the Board of Management were deducted from the payment amount under the performance share plan.

SUPERVISORY BOARD REMUNERATION

The remuneration of the members of the Supervisory Board of Volkswagen AG is comprised entirely of non-performance-related remuneration components. Remuneration for supervisory board work at subsidiaries comprises a mix of non-performance-related and performance-related components.

PENSION ENTITLEMENTS AND BENEFITS TO RETIRED MEMBERS OF THE BOARD OF MANAGEMENT

On December 31, 2020, the pension provisions for members of the Board of Management amounted to €36.6 million (previous year: €60.5 million). Current pensions are index-linked in line 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 higher increase.

For former members of the Board of Management and their surviving dependents €35.9 million (previous year adjusted: €14.5 million) were granted. Pension provisions in accordance with IFRSs for this group of individuals amounted to €396.3 million (previous year: €373.7 million).

In connection with his departure from the Board of Management effective March 31, 2020, Mr. Schot was granted the following amounts:

• a non-performance-related component of €2.4 million (previous year: €– million),
• a performance-related component of €3.8 million (previous year €– million) and
• a long-term incentive component of €3.0 million (previous year: €– million).

In connection with his departure from the Board of Management effective June 30, 2020, Mr. Sommer was granted a non-performance-related component of €1.5 million (previous year: €– million).

In connection with his departure from the Board of Management effective July 15, 2020, Mr. Renschler was granted a non-performance-related component of €10.1 million (previous year: €– million).

The individual remuneration of the members of the Board of Management and the Supervisory Board is explained in the remuneration report, which is part of the group management report. A comprehensive assessment of the individual remuneration components, including the LTI in the form of the performance share plan, can also be found there.

Wolfsburg, February 16, 2021

Volkswagen Aktiengesellschaft
The Board of Management