Institutional Investors and Emissions Scandal

Volkswagen: Whether those complaints will make any difference is another question, according to The Toronto Star. Institutional investors and individual shareholders have grown increasingly restive about what many see as Volkswagen managers' failure to adequately explain who was responsible for the emissions scandal, as well as their refusal to fully give up bonuses even after the company reported its first annual loss in more than two decades. Management bonuses, sagging profits and an emissions scandal have all caused the company stock to plunge. They have been rewarded for failure, said Hans-Christoph Hirt, co-head of Hermes EOS, a firm that represents large institutional investors. Article Continued Below But with outsize influence in the hands of a few large shareholders, top management at the company faced little threat to its authority. react-text: 142 Michael Mueller, head of German automaker Volkswagen AG, arrives for the annual Volkswagen general shareholders meeting on June 22, 2016 in Hanover, Germany. Addressing the meeting, Hirt urged shareholders not to re-elect the supervisory board, saying its members were ultimately responsible for a culture in which the emissions scandal was able to unfold and remain undetected for many years. (news.financializer.com). As reported in the news.