Porsche board of directors waves million bonus for IPO

Volkswagen and Porsche boss Oliver Blume and his colleagues on the Porsche board of directors can expect share bonuses worth millions if the sports car manufacturer goes public. Depending on the issue price for the preferred shares, Blume is to be allocated virtual Porsche shares for 1.05 to 3.15 million euros, the other board members virtual shares for 600,000 to 1.8 million euros, according to the stock exchange prospectus published on Monday. They are to be issued in three tranches on the first, second and third anniversary of the IPO - depending on how the share has developed by then. In the best case, Blume could get 4.725 million euros, his colleagues 2.7 million each.

But the Porsche workforce should also benefit from that initial public offering benefit. The Stuttgart group intends to pay out a total of 250 million euros to its 37,800 employees as an “IPO bonus” if Porsche AG manages to go public. That's arithmetically around 6600 euros for each.

Blume's dual role as CEO of Porsche AG and its parent company Volkswagen had previously raised eyebrows among some investors. The stock exchange prospectus now states that Blume will in future spend 50 percent of his working hours on Porsche and use for VW. However, the double burden could lead to decisions being delayed or not made at all. Blume's base salary at Porsche, at €800,000, is lower than that at VW, where he is said to be paid almost €1.12 million for his "part-time job". The performance bonuses in Wolfsburg are also significantly higher.

CFO Lutz Meschke also has a second job as a member of the executive board of the family holding company Porsche SE. He therefore receives from the Porsche AG only 85 percent of the salary that would be appropriate for a "full-time CFO." The salary at Porsche SE is an additional factor.

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