Porsche Offered Wiedeking Almost $200 Million to Step Aside
Although former Porsche CEO Wendelin Wiedeking departed the sports car maker with a hefty €50 million ($71.1 million) payout, he was reportedly offered three times that figure to step down, and was possibly entitled to more.
According to Wiedeking’s lawyer, Jobst-Hubertus Bauer, the Porsche and Piech families initially offered him €140 million ($199 million) to resign.
“Wiedeking did not demand this amount. It was an offer presented by the families, but the labor representatives on the supervisory board would not accept it,” Bauer told Reuters. He said Porsche Chairman Wolfgang Porsche and steering committee member Hans-Michel Piech had approved the larger sum.
A spokesman from a German trade union said labor representatives, which represent half of Porsche’s board, rejected the payment.
But according to Bauer, Wiedeking could have had an even higher payout.
“Wiedeking was entitled to get between €170 million-€260 million, depending on the results of fiscal ear 2008/09, had there been no agreement,” the lawyer said. A severance payment of that kind would have been the highest in German corporate history.
Wiedeking says he will donate half of his final severance pay to charity. By stepping aside, the former Porsche CEO paved the way for Volkswagen to acquire its rival.