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Frankfurt — Volkswagen (VW) plans to link top executives’ bonuses to environmental, social and governance (ESG) targets as the German industrial giant seeks to bolster sustainability credentials that are increasingly relevant to investors.

VW will seek shareholder approval for the updated remuneration system at its AGM in 2021, chair Hans Dieter Pötsch said. Executives’ compensation includes the bonus, a fixed salary and a long-term incentive plan linked to share price performance...

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