Remuneration of the Members of the Board of Management

In the reporting year, the Volkswagen Group’s business was impacted by the challenging global market environment. Amid these conditions, the Group delivered 9.0 million units to customers. This was 0.5% fewer vehicles than in the previous year. While sales revenue was on a level with the previous year at €321.9 billion, the operating result declined to €8.9 billion. The operating return on sales was 2.8% and the net cash flow in the Automotive Division amounted to €6.4 billion.

Principles of Board of Management remuneration

The remuneration of the Board of Management is based on the remuneration system adopted by the Supervisory Board on December 14, 2020 with effect from January 1, 2021. This was most recently revised by the Supervisory Board in April 2024, with effect from January 1, 2024, to better reflect the interests of the capital market.

The Annual General Meeting approved the modified remuneration system on May 29, 2024 with 99.48% of the votes cast. This has applied to all active Board of Management members since January 1, 2024. The remuneration system for the members of the Board of Management is clear and transparent. It implements the requirements of the AktG as amended by the Gesetz zur Umsetzung der zweiten Aktionärsrechterichtlinie (ARUG II – German Act on the Implementation of the Second Shareholder Rights Directive) and takes into account the recommendations of the German Corporate Governance Code.

For members of the Board of Management already appointed before the Supervisory Board’s first resolution on a remuneration system in accordance with section 87a of the AktG on December 14, 2020 and whose service contract has not been renewed since then, the following exceptions applied: the performance share plan continued to have only a three-year performance period, but otherwise corresponded to the performance share plan described in the remuneration system. In these cases, penalty and clawback rules were only to apply upon renewal of their contracts. Exceptions in fiscal year 2025 applied solely to Markus Duesmann, who stepped down in fiscal year 2023.

The level of the Board of Management remuneration should be appropriate and attractive in the context of the Company’s national and international peer group. Criteria include the tasks of each individual Board of Management member, their personal performance, the economic situation, and the performance of and outlook for the Volkswagen Group, as well as how customary the remuneration is when measured against the peer group and the remuneration structure that applies to other areas of the Volkswagen Group. In this context, comparative studies on remuneration are conducted on a regular basis. In fiscal year 2025, all active Board of Management members decided to make a financial contribution of their own as a sign of their commitment to the Zukunft Volkswagen profit improvement program. To this end, all members of the Board of Management active in fiscal year 2025 declared that, for a period of up to five years, they will annually waive a portion of their individual remuneration actually received in the respective year. This remuneration consists of the annual base salary and short-term variable remuneration for the respective fiscal year, as well as the long-term variable remuneration paid out in the respective fiscal year.

In the Remuneration Report for fiscal year 2024, the Board of Management and Supervisory Board reported in detail on the remuneration paid to members of the Board of Management in fiscal year 2024. The Annual General Meeting on May 16, 2025 approved the Remuneration Report for fiscal year 2024 with a majority of 98.96% of the votes cast. Comments by investors and investor representatives were also taken into account in the preparation of the Remuneration Report for fiscal year 2025, for example the minimum and maximum achievable amounts in the short-term and long-term variable remuneration of the Board of Management members are presented even more transparently and the link between the non-financial performance criteria in the annual bonus for Board of Management members and the materiality assessment carried out as part of sustainability reporting is described.

In this chapter, we provide an overview of the remuneration system for the Board of Management members in fiscal year 2025 before going into the components of the remuneration in fiscal year 2025.

Overview of the remuneration components

The table below provides an overview of the components of the remuneration system applicable for fiscal year 2025 for the members of the Board of Management. The table also outlines the composition of the individual remuneration components and explains their targets, particularly in respect of how the remuneration will promote the Company’s long-term performance. A more detailed description of the remuneration system applicable for fiscal year 2025 for the members of the Board of Management is available at www.volkswagen-group.com/remuneration.

Board of Management members in fiscal year 2025

The members of the Volkswagen AG Board of Management in fiscal year 2025 were as follows:

• Oliver Blume, member of the Board of Management since April 13, 2018, Chair of the Board of Management since September 1, 2022, also Chair of the Executive Board of Dr. Ing. h.c. F. Porsche AG until December 31, 2025
• Arno Antlitz, member of the Board of Management since April 1, 2021
• Ralf Brandstätter, member of the Board of Management since January 1, 2022, also CEO of Volkswagen (China) Investment Company Limited
• Gernot Döllner, member of the Board of Management since September 1, 2023, also Chair of the Board of Management of AUDI AG
• Manfred Döss, member of the Board of Management since February 1, 2022
• Gunnar Kilian, member of the Board of Management from April 13, 2018 until July 4, 2025
• Thomas Schäfer, member of the Board of Management since July 1, 2022
• Thomas Schmall-von Westerholt, member of the Board of Management since January 1, 2021
• Hauke Stars, member of the Board of Management since February 1, 2022

Members generally do not receive additional remuneration for discharging other mandates on management bodies, supervisory boards or similar, especially in other companies of the Volkswagen Group, as part of their Board of Management mandate. If such remuneration is nevertheless granted, it is counted toward the remuneration for their work as a member of the Board of Management of Volkswagen AG. For mandates that Board of Management members do not discharge as part of their Board activities, the Supervisory Board shall decide whether and, if any, how much remuneration the members shall receive in addition to the remuneration for their activities as members of the Board of Management of Volkswagen AG. Any remuneration that Board members receive for such mandates shall be determined by the body responsible for the entity in question and reported by this entity where necessary. Currently, no such remuneration is added to the remuneration that the Board of Management members receive from Volkswagen AG.

A different arrangement was reached with Mr. Blume with regard to the performance of his duties as Chair of the Executive Board of Dr. Ing. h.c. F. Porsche AG (Porsche AG) until December 31, 2025: from January 1, 2023 to December 31, 2025, Volkswagen AG granted Mr. Blume 50% of the remuneration for the Chair of the Board of Management based on a newly concluded service contract; an exception was made for fringe benefits – in this respect, Mr. Blume received the full amount of the fringe benefit allowance for the Chair of the Board of Management of Volkswagen AG; however, Porsche AG reimbursed Volkswagen AG for half of the fringe benefits costs. From January 1, 2023 until December 31, 2025, Porsche AG granted Mr. Blume 50% of the remuneration for the Chair of the Executive Board of Porsche AG. This remuneration was based on the remuneration system for the members of the Executive Board of Porsche AG. Mr. Blume received a base salary, one-year variable remuneration (STI) and multi-year variable remuneration (LTI) from Porsche AG; Mr. Blume did not receive fringe benefits from Porsche AG. In addition, Porsche AG granted Mr. Blume an occupational retirement provision in the form of a defined contribution plan. In preparation for the IPO completed on September 29, 2022, Porsche AG agreed on an IPO bonus for Mr. Blume. This IPO bonus is structured as a share plan with a one-, two- and three-year term, in each case starting from the time of the IPO. The final tranche of the IPO bonus was due to be paid in September 2025. Remuneration granted to Mr. Blume by Porsche AG is counted towards the cap on cash remuneration and Mr. Blume’s maximum remuneration at Volkswagen AG. In the overview in the tables of the remuneration granted and owed to Mr. Blume in fiscal year 2025, the remuneration components granted to Mr. Blume by Porsche AG are included and shown separately.

A different arrangement has also been reached with Mr. Brandstätter for his work at Volkswagen (China) Investment Company Limited: Mr. Brandstätter receives separate remuneration for his work as CEO of Volkswagen (China) Investment Company Limited. Mr. Brandstätter’s contractual remuneration under his contract of employment with Volkswagen AG is reduced accordingly for the duration of his work at Volkswagen (China) Investment Company Limited.

Remuneration granted and owed in fiscal year 2025

In accordance with section 162(1) sentence 1 of the AktG, the remuneration report must report on the remuneration granted and owed to each individual member of the Board of Management in the last fiscal year. These terms are understood as follows:

The term “granted” (gewährt) refers to the actual receipt (Zufluss) of the remuneration component.

The term “owed” (geschuldet) refers to all legally existing liabilities for remuneration components that are due but have not yet been fulfilled.

Overview in the tables

The following tables show the remuneration actually received by members of the Board of Management in fiscal year 2025. The remuneration reported as granted in fiscal year 2025 consists of the base salary, fringe benefits and the annual bonus. The bonus was paid in the month following the approval of the Company’s consolidated financial statements for fiscal year 2025, along with the LTI for the performance period 2021 to 2024 or 2022 to 2024 paid in fiscal year 2025. The remuneration components granted to Mr. Blume by Porsche AG and to Mr. Brandstätter by Volkswagen (China) Investment Company Limited are presented in the same way.

The relative shares shown in the tables relate to the remuneration components granted and owed in the respective fiscal year in accordance with section 162(1) sentence 1 of the AktG. They thus include all benefits actually received in the respective fiscal year, regardless of the fiscal year for which the Board of Management members received them. The relative shares indicated here are thus not comparable with the respective relative shares of fixed and variable remuneration components as part of total remuneration in the description of the remuneration system according to section 87a(1) sentence 2 no. 3 of the AktG. The shares indicated in the remuneration system relate to the targets agreed for the relevant fiscal year, irrespective of the time at which the respective remuneration component was paid out.

Pension expense is reported as service cost within the meaning of IAS 19. The service cost in accordance with IAS 19 does not constitute remuneration granted or owed within the meaning of section 162(1) sentence 1 of the AktG as it is not actually received by the Board of Management member in the reporting year.

Maximum remuneration corresponds to maximum remuneration within the meaning of section 87a(1) sentence 2 no. 1 of the AktG in accordance with the remuneration system adopted by the Supervisory Board and approved by the Annual General Meeting. As in the past, in addition to maximum remuneration, a limit on cash remuneration, which includes the base salary paid out for the relevant fiscal year, the annual bonus granted for the relevant fiscal year and paid out in the subsequent year, and the performance share plan paid out in the relevant fiscal year and for which the performance period ended immediately before the respective fiscal year, has been agreed with the members of the Board of Management.

The service contracts of all active Board of Management members include penalty and clawback provisions. Only the service contract of former Board of Management member Mr. Duesmann, which was concluded before December 14, 2020, i.e. prior to the first resolution on a remuneration system in accordance with ARUG II, does not contain any penalty and clawback provisions. Volkswagen AG did not make use of the existing penalty and clawback rules in fiscal year 2025.

ANNUAL BONUS

Description of performance criteria for the variable remuneration

Annual bonus – financial subtargets

The following overviews show the threshold values, target values and maximum values set by the Supervisory Board for fiscal year 2025 for the financial subtargets net cash flow in the Automotive Division and operating return on sales (RoS), along with the actual figures and target achievement levels in percent in fiscal year 2025.

Annual bonus – ESG factor

For fiscal year 2025, the Supervisory Board used the option provided to apply the diversity index only for the social subtarget and to suspend the employee satisfaction index as an ESG criterion. Beginning in fiscal year 2026, the employee satisfaction index will be replaced by the engagement index. The engagement index, together with the diversity index, will serve as a social sub-target of the ESG factor for the annual bonus from fiscal year 2026 onwards. The following overview shows the minimum values, target values and maximum values set by the Supervisory Board for fiscal year 2025 for the environmental (decarbonization index) and social (diversity index) sub-targets along with the actual figures and target achievement levels in fiscal year 2025. The decarbonization index measures the emissions of CO₂ and CO₂ equivalents by the brands producing passenger cars and light commercial vehicles over the entire life cycle and documents the progress made in improving our carbon footprint. The diversity index is used worldwide to measure developments in the proportion of women in management and the international composition of top management. The indicator provides incentives for exemplary leadership and corporate culture. Due to the regulatory framework in the United States, employees of Volkswagen AG’s US subsidiaries and their non-US subsidiaries, as well as other employees in the United States, are excluded from the measurement of the proportion of women using the diversity index. Employees of Volkswagen AG’s US subsidiaries and other employees in the United States are also excluded from the determination of the internationalization of top management. The governance factor is a means for the Supervisory Board to express its satisfaction with the expected and actual conduct of the Board of Management with regard to the criteria of integrity and compliance. As a rule, the governance factor should be 1.0 and may only be reduced to 0.9 or raised to 1.1 in exceptional circumstances based on the professional judgment of the Supervisory Board. For fiscal year 2025, the Supervisory Board set the governance factor at the standard value of 1.0 for all members of the Board of Management; this takes into account and assesses the collective performance of the Board of Management as a whole and the performance of each Management Board member individually.

The ESG factor for fiscal year 2025 totaled 1.30.

The ESG factors underlying the remuneration system are described in the Group management report within the 2025 Annual Report. They are classed as strategic non-financial key performance indicators and allocated to the topics identified as material in the double materiality assessment of the Volkswagen Group.

LONG-TERM INCENTIVE (LTI): (PHANTOM) PERFORMANCE SHARE PLAN (PSP)

The illustration relates to the LTI with the performance periods 2025 to 2027 and 2025 to 2028. The LTI with the performance periods 2021 to 2024 and 2022 to 2024 that was paid out in fiscal year 2025 and reported in this remuneration report as remuneration granted and owed had a maximum value for the EPS performance measurement of 150% and the payment amount was limited to 200% of the target amount.

Long-term incentive (LTI)

The four-year performance share plan has applied since January 1, 2021 to all Board of Management members with service contracts newly concluded or renewed after the Supervisory Board resolution of December 14, 2020. For the Board of Management members already appointed at the time of the Supervisory Board resolution of December 14, 2020, a three-year performance period continued to apply until their contracts were renewed. For the description of the remuneration granted and owed under the performance share plan to the Board of Management members active in fiscal year 2025, this means that

• During fiscal year 2025, no active member of the Board of Management had a three-year performance share plan. Only Mr. Duesmann, who stepped down in fiscal year 2023, had a prorated performance share plan with a three-year performance period due to his service contract which continued until March 31, 2025.
• The appointment of Board of Management member Mr. Kilian was extended in fiscal year 2021. The performance share plan therefore had a three-year and a four-year performance period on a pro rata temporis basis in fiscal year 2021. In fiscal year 2025, Mr. Kilian received a payment from the prorated four-year performance share plan with the 2021 – 2024 performance period, which is reported in this remuneration report as remuneration granted. The share of the performance share plan with the three-year performance period 2021 – 2023 was reported on in the 2024 remuneration report.
• The appointment of Board of Management Chair Mr. Blume was extended in fiscal year 2022. The performance share plan therefore had a three-year and a four-year performance period on a pro rata temporis basis in fiscal year 2022. In fiscal year 2025, Mr. Blume received a payment from the prorated three-year performance share plan with the 2022 – 2024 performance period, which is reported in this remuneration report as remuneration granted.
• The Board of Management members Mr. Antlitz and Mr. Schmall-von Westerholt already had a performance share plan with a four-year performance period in fiscal year 2021, which was paid out in fiscal year 2025. This performance share plan is reported as remuneration granted in the 2025 remuneration report.
• The remaining active members of the Board of Management did not yet receive payments under the performance share plan in fiscal year 2025, so there is no remuneration granted to be reported.

EPS performance

The following overviews show the minimum value, target value and maximum value set by the Supervisory Board at the beginning of the performance period for the performance share plans 2021 to 2024 and 2022 to 2024, which were each paid out in fiscal year 2025, along with the actual figure and target achievement levels as a percentage.

The following overviews show the minimum values, target values and maximum values set by the Supervisory Board at the beginning of the performance periods 2022 to 2025, 2023 to 2025 or 2023 to 2026, 2024 to 2026 or 2024 to 2027 and 2025 to 2027 or 2025 to 2028 along with the actual figures and target achievement levels attained in percent so far for the individual years of the assessment period up to and including 2025. The performance share plans for the performance periods 2022 to 2025, 2023 to 2025 or 2023 to 2026, 2024 to 2026 or 2024 to 2027 and 2025 to 2027 or 2025 to 2028 were not due in fiscal year 2025 and have not yet been paid out; they therefore do not constitute remuneration granted or owed in fiscal year 2025.

Reference prices/dividend equivalent for the performance periods

The relevant initial reference price, closing reference price and dividend equivalent for the performance periods 2021 to 2024 and 2022 to 2024 can be found in the following overview.

The following overview shows the initial reference price, closing reference price and dividend equivalent for the performance share plans not yet due and not yet paid out for the performance periods 2022 to 2025, 2023 to 2025 or 2023 to 2026, 2024 to 2026 or 2024 to 2027 and 2025 to 2027 or 2025 to 2028.

Conformity with the remuneration system

The remuneration granted and owed to the Board of Management members in fiscal year 2025 meets the requirements of the remuneration system for the members of the Board of Management. There was no deviation from the applicable remuneration system in fiscal year 2025. There was no need to reduce the payments related to the annual bonus and performance share plan based on the maximum values of the individual remuneration components being exceeded, as they did not exceed 200% of the target amount for the annual bonus or 250% of the target amount for the performance share plan. The total remuneration granted and owed to the Board of Management members in fiscal year 2025 did not exceed the maximum remuneration envisaged by the remuneration system. Volkswagen AG granted Mr. Blume 50% of the remuneration for the position of Chair of the Board of Management of Volkswagen AG from January 1, 2023 to December 31, 2025. In derogation of this, Volkswagen AG granted Mr. Blume the full amount of the fringe benefit allowance for the Chair of the Board of Management of Volkswagen AG. Mr. Blume was also Chair of the Executive Board of Porsche AG until December 31, 2025. From January 1, 2023 until December 31, 2025, Porsche AG granted Mr. Blume 50% of the remuneration for the position of Chair of the Executive Board of Porsche AG. Mr. Blume stepped down as Chair and member of the Executive Board of Porsche AG with effect from the close of December 31, 2025. Volkswagen AG will grant Mr. Blume 100% of the remuneration as Chair of the Board of Management of Volkswagen AG from January 1, 2026. In preparation for the IPO completed on September 29, 2022, Porsche AG agreed on an IPO bonus for Mr. Blume. This IPO bonus is structured as a share plan with a one-, two- and three-year term, in each case starting from the time of the IPO. Mr. Blume was allocated a total of 19,290 phantom preferred shares in Porsche AG in fiscal year 2022, divided into three tranches of 6,430 phantom preferred shares each. Any remuneration granted and owed from this IPO bonus will be reported in the remuneration report for the fiscal year in which the relevant tranche is paid out to Mr. Blume. The third and final tranche was paid out in fiscal year 2025. As a precaution, Volkswagen AG approved the remuneration from Porsche AG as a third-party remuneration arrangement. The remuneration granted to Mr. Blume by Porsche AG is counted towards the maximum remuneration and the cap on cash remuneration of Volkswagen AG.

Benefits and pension commitments in connection with termination of service

Benefits and pension commitments to Board of Management members for early termination of service

The remuneration system for the members of the Board of Management and the service contracts of the Board of Management members provide for severance payments in the event that an appointment as member of the Board of Management is revoked. In such cases – except where there is good cause entitling the Company to terminate the service contract prematurely or where the appointment is revoked due to a gross breach of duty – the Board of Management member receives a gross severance payment in the amount of the total remuneration of the past financial year up to the end of the regular term of the appointment, for a maximum of two years, calculated as of the date of the termination of the appointment as member of the Board of Management. Any temporary benefits for new Board of Management members are excluded from the calculation. Should a Board of Management member leave during the course of the first fiscal year of the appointment, the calculation may by way of exception be based on the expected total remuneration for the current fiscal year. The severance payment will be paid as a one-off payment or in a maximum of 24 monthly installments from the time of the termination of the appointment as a member of the Company’s Board of Management. Contractual remuneration paid by the Company for the period from the termination of the appointment until the end of the service contract will be offset against the severance payment. Should Board of Management members take up other work after the termination of their appointment, the amount of the severance payment will be reduced by the amount of the income earned from that work. Should a post-contractual non-compete covenant be agreed, the severance payment will be offset against the compensation received for observing the post-contractual non-compete covenant.

The members of the Board of Management are also entitled to a pension and to a surviving dependents’ pension as well as the use of company cars for the period in which they receive their pension in the event of early termination of their service on the Board of Management.

Also in the case of early termination, the variable remuneration components will generally be paid at the contractually agreed maturity dates in accordance with the terms of the contract. There will be no early calculation and payout – except where the employment relationship ends due to permanent disability or death.

In line with the recommendation under G.14 of the 2022 Code, the service contracts do not provide for change of control clauses. In the event of a change of control, members of the Board of Management are therefore not entitled to payments or other special benefits (for example a commitment to grant shares) from Volkswagen AG.

Pension commitments to Board of Management members for regular termination of service

In the event of regular termination of their service on the Board of Management, the members of the Board of Management are entitled to a pension, including a surviving dependents’ pension, as well as the use of company cars for the period in which they receive their pension. The agreed benefits are paid or made available when the Board of Management member reaches the age of 65, or in Mr. Blume’s and Mr. Kilian’s case, when they reach the age of 63.

The Board of Management members received a defined contribution plan, which is based in principle on a works agreement that also applies to the employees of Volkswagen AG covered by collective agreements and includes retirement, invalidity and surviving dependents’ benefits. A pension contribution in the amount of 40% of the base salary is paid to Volkswagen Pension Trust e.V. at the end of the calendar year for each year they are appointed to the Board of Management. Since fiscal year 2023, the pension contribution for Mr. Blume has been 50% of his base salary. No other changes were made to the defined contribution plans in fiscal year 2025. The annual pension contributions result in modules of what is, in principle, a lifelong pension in line with the arrangements that also apply to employees covered by collective agreements.

The individual pension modules vest immediately upon payment to Volkswagen Pension Trust e.V. Instead of a lifelong pension, benefits can optionally be paid out as a lump sum or in installments when the beneficiary reaches retirement age.

The overview on the previous page shows the pensions earned for the individual members of the Board of Management in fiscal year 2025, indicating the present value and the pension expense for the Company during the last fiscal year.

Benefits and pension commitments to Board of Management members who left in fiscal year 2025

Mr. Kilian stepped down from the Board of Management of Volkswagen AG in fiscal year 2025. Mr. Kilian was originally appointed as a member of the Board of Management until the close of December 9, 2026. He resigned from his position as member of the Board of Management by mutual agreement with the Supervisory Board as of the close of July 4, 2025. Volkswagen AG concluded a termination agreement with Mr. Kilian on the occasion of his resignation from the Board of Management. The object of this agreement includes the continuation of his service contract until the regular termination date, i.e. the close of December 9, 2026. Mr. Kilian will receive the contractually agreed remuneration, including the contractually agreed fringe benefits, from Volkswagen AG for the remaining term of the continued service contract. Variable remuneration components will be paid out on the contractually agreed dates; there will be no early calculation or payout. Each annual bonus will be based on a governance factor of 1.0. Mr. Kilian is available to Volkswagen AG as a consultant, without additional remuneration, until the expiry of his service contract. He shall not receive any severance payment in the form of a lump-sum settlement from Volkswagen AG to settle future remuneration claims.

No clawback claims in fiscal year 2025

Volkswagen AG did not seek to claw back any variable remuneration components from individual Board of Management members in fiscal year 2025. The prerequisites for a clawback claim did not apply.

Remuneration of former Board of Management members

In accordance with section 162(1) sentence 1 of the AktG, the remuneration granted and owed to former members of the Board of Management must also be reported.

Remuneration granted and owed in fiscal year 2025 (individualized)

Under section 162(5) sentence 2 of the AktG, the obligation to report individually on the remuneration granted and owed to former Board of Management members also extends to remuneration granted and owed in the ten years after their most recent term of office on the Board of Management or Supervisory Board at Volkswagen AG.

The following tables show the remuneration granted and owed in fiscal year 2025 to the individual former members of the Board of Management who left after fiscal year 2015. As with the current Board of Management members, the annual bonus paid at the beginning of 2026 to former Board of Management members for the 2025 fiscal year is counted as remuneration granted in fiscal year 2025.

Total remuneration granted to former Board of Management members

Section 162(5) sentence 2 of the AktG does not require the Company to report individually on the remuneration granted and owed in 2025 to former members of the Board of Management whose most recent term of office on the Board of Management or Supervisory Board of Volkswagen AG came to an end before the beginning of 2016 and thus more than ten years before this remuneration report was prepared. A total of €11.7 million was granted and owed to such former Board of Management members and their surviving dependents in fiscal year 2025. Obligations for pensions for this group of persons measured in accordance with IAS 19 amounted to €124.6 million.

Comparative presentation

The following table shows a comparison of the year-on-year percentage change in the remuneration of current and former Board of Management members with the earnings performance of Volkswagen AG and with the average remuneration of employees on a full-time equivalent basis. For members of the Board of Management, the remuneration granted and owed in the reporting year is placed in relation to the equivalent figure for the previous year.

Earnings performance is shown on the basis of Volkswagen AG’s net income or loss for the year. However, the remuneration of the Board of Management members is based on Group KPIs. In order to demonstrate more transparently how the remuneration of the Board of Management members has changed compared with earnings performance, the earnings after tax, operating result and operating return on sales of the Volkswagen Group, as reported in the consolidated financial statements, are also used in determining earnings performance. This means that Group KPIs are not only applied in calculating the remuneration of the Board of Management members but also in determining earnings performance. The Group KPIs used in determining earnings performance show the overall effect of the business activities for which the Board of Management is responsible.

The comparison with the growth in average employee remuneration is based on the personnel expenses of Volkswagen AG reported in the notes to the annual financial statements of Volkswagen AG, adjusted for the remuneration of the members of the Board of Management. These adjusted personnel expenses are divided by the number of full-time equivalent employees of Volkswagen AG as of December 31, 2025, excluding the members of the Board of Management.

Peer group

The Supervisory Board regularly reviews and, if necessary, adjusts the level of the remuneration, the total remuneration cap and the individual targets. Among other things, the Supervisory Board performs a vertical comparison with the remuneration and employment terms of the Company’s employees and a horizontal comparison with the remuneration and employment terms of other companies’ management board members. The Supervisory Board conducts a comparison with what it considers to be a suitable peer group to assess whether the specific total remuneration paid to the members of the Board of Management is customary when measured against that paid in other companies. This peer group is regularly reviewed by the Supervisory Board – most recently at the beginning of 2025 – and adjusted if necessary. The peer group currently comprises the following companies: BMW, Mercedes-Benz Group, Ford, General Motors, Stellantis, Nissan Motor Corporation, Toyota, BYD, Tesla (excluding CEO), hp, IBM, Uber, SAP, Samsung, General Electric, Siemens, Hitachi and Boeing. The companies in the peer group were chosen to reflect the Volkswagen Group’s strategic business fields. Technology and services companies, especially in the battery/electronics, IT/software and mobility services segments, have also been included in the peer group along with the global automotive manufacturers. In addition, the peer group includes selected global industrial corporations that, in the view of the Supervisory Board, appear comparable with the Volkswagen Group in terms of their development focus, vertical integration, global orientation and level of complexity. In the view of the Supervisory Board, the composition of this peer group is representative of the Volkswagen Group’s specific competitive environment in the sales market and in the recruitment market for top executives.