BMW Climate Strategy May Influence Manager Compensation
(Bloomberg) -- /
German automaker BMW AG is set to announce strict climate targets in the coming days, including requirements that will directly influence managers’ compensation, newspaper Frankfurter Allgemeine Sonntagszeitung reported on Sunday, citing internal documents.
The company will commit to save tens of millions of tons of CO2 annually until 2030, according to the newspaper. For that, it will control the entire production cycle -- from raw materials and the use of the car, through to the recycling of batteries. How managers fulfill the requirements will directly influence the variable component of his or her salary.
Automakers’ fleet emissions worsened in 2019 versus 2018, according to European Union data, and companies are struggling to comply with EU emission rules.
BMW announced on Friday it plans to make a version of its X5 SUV that runs on hydrogen fuel-cells, part of the carmaker’s plan of producing as many drive variants as possible until one technology proves dominant.
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