VW Dieselgate: Shareholder Vote on Winterkorn Liability Settlement

Volkswagen Diesel Scandal: Shareholders to Vote on Executive Liability Settlements at June AGM

Volkswagen is preparing for its Annual General Meeting (AGM) on June 18, where shareholders will face a critical decision regarding the financial fallout of the diesel emissions scandal. While the agenda includes standard items—such as the approval of 2025 financial statements, which show a profit that nearly halved for Europe’s largest automaker—the focus is shifting toward the resolution of liability claims against former top executives.

The meeting will serve as a pivotal moment for the company to settle lingering debts and legal obligations stemming from the “diesel theme,” as it is often referred to within the VW Group. At the heart of the discussion are the liability settlements involving former VW CEO Martin Winterkorn and former Audi boss Rupert Stadler.

Revisiting the Martin Winterkorn Liability Agreement

The board and supervisory board have proposed that shareholders re-approve a liability settlement with Martin Winterkorn that was originally established in 2021. Under the terms of this agreement, Winterkorn is required to pay €11.2 million in the event of a conviction related to the diesel scandal.

The push for re-approval comes as legal proceedings against the former top manager in Braunschweig remain suspended. Because the presumption of innocence still applies to Winterkorn, the company is seeking shareholder validation to maintain the existing framework of the 2021 deal.

The Collapse of Rupert Stadler’s Settlement

While the company seeks to stabilize the Winterkorn agreement, the situation regarding former Audi CEO Rupert Stadler has deteriorated. A liability settlement previously reached between Stadler and the VW Group collapsed following his legal conviction, which became final on December 19, 2025, after confirmation by the Federal Court of Justice.

The financial implications of this collapse are significant. Under the original 2021 terms, Stadler was slated to make a personal contribution of €4.1 million. This figure was tied to severance claims he held against Volkswagen, which were intended to be folded into the settlement rather than paid out. However, following his conviction, Volkswagen has stated that the economic value of Stadler’s personal contribution has plummeted from the original €4.1 million to approximately €420,000.

Volkswagen has confirmed that negotiations for a new agreement with the former Audi chief have already begun, though a final deal has not yet been reached.

Stadler’s Conviction and Legal Precedent

Rupert Stadler’s legal battle was one of the most high-profile aspects of the scandal, spanning 171 days of trial. In May 2023, Stadler issued a confession before the Munich II Regional Court, admitting to misconduct and acknowledging that he failed to intervene when he had the opportunity to do so.

The court ultimately sentenced Stadler to a suspended prison term of one year and nine months, alongside a fine of €1.1 million.

Ongoing Legal Exposure: The Second Audi Diesel Trial

Volkswagen’s legal challenges are far from over. In February, a second Audi diesel trial commenced at the Munich II Regional Court. This proceeding targets four former Audi executives:

• Stefan Knirsch and Ulrich Hackenberg: Both former board members responsible for technical development.
• Richard Bauder: Former head of diesel engine development at the Neckarsulm site (1993–2012).
• Axel Eiser: Former head of overall powertrain development at Audi.

These individuals face charges including fraud, indirect falsification of documents, and punishable advertising. Recently, Richard Bauder denied the allegations during court testimony, indicating that the legal resolution for these executives may be protracted.

As Volkswagen navigates a period of shrinking profits and ongoing judicial scrutiny, the June 18 meeting will determine whether the company can finally close the financial chapter of its most infamous corporate crisis.