Volvo Group shelves plan to hike bonuses
Swedish heavy-vehicle maker Volvo on Wednesday said it would withdraw a proposal to raise bonuses to top managers.
The proposal had drawn criticism since the group - which does not include Volvo Cars, the Swedish subsidiary of US car giant Ford - is planning to slash thousands of jobs in its Swedish home-base.
Critics in recent days included Prime Minister Fredrik Reinfeldt and local unions, reported dpa.
In a statement, the Volvo board said it would scrap the proposal "to raise the ceiling for the performance-based variable salary from 50 per cent to 60 per cent of the fixed salary for the 250 most senior executives in the Volvo Group."
Board chairman Finn Johansson said the board had "noted that the proposal presented created debate, internally as well as externally."
He added that the board "does not want to present a proposal that adversely affects cooperation within the Group in these exceptional times."
The pulled proposal also means that there would not be an increase of shares in the long-term incentive programme to top executives including chief executive Leif Johansson, the statement said.
The earlier proposal had been planned to be presented at the upcoming annual general meeting on April 1.