Volkswagen’s CEO Matthias Müller took home €10.14m in 2017

Volkswagen’s (VW) CEO Matthias Müller took home €10.14m in 2017, a near 40 per cent increase in what he was paid the previous year.

Müller received a basic remuneration of €9m plus “fringe benefits” such as company cars, taking his total pay to over €10m, despite the company bringing in a €10m cap on top managers’ compensation following investor criticism at excessive boardroom pay.

However, while Müller’s pay has increased for this year, under the old system he would have received €13.15m, according to the FT.

Annual bonuses have also been capped at 180 per cent of the annual bonus target. The minimum salary a board member can earn is €3.5m.

The pay rise for Müller comes as the company appears to bounce bank from a period of financial instability surrounding the emissions scandal, in which VW was accused of fitting its Diesel engines with devices designed to pass emissions tests.

Read more: VW’s share price drops after profits and sales fall in first quarter

The company generated an operating profit €17bn a 16 per cent increase on the year before, while sales revenue also jumped 6.2% year-on-year to €230bn.

The figures mark a significant improvement from VW’s troubled finances in 2016, when it reported a fall in pre-tax profits and sales in the first quarter , forcing the share price to fall by more than 3.5 per cent.

Müller tweeted:

“We are on the right path and are gaining momentum. We still have plenty of work ahead of us. But: we will reach our goal.” – #VWGroup CEO Müller pic.twitter.com/3W9pde1VgZ— Volkswagen Group (@VWGroup) March 13, 2018

“The results of the year 2017 demonstrate, we are actively shaping the transformation of our company. And we will not cease in our efforts in 2018.” – #VWGroup CFO Witter pic.twitter.com/plBhx30lip— Volkswagen Group (@VWGroup) March 13, 2018