Europe

VW makes $5.4 billion profit in 2016, limits executive pay

Volkswagen says it bounced back into the black in 2016 after suffering a loss the previous year due to the diesel emissions scandal.

The German automaker on Friday reported a net profit attributable to VW shareholders of 5.1 billion euros ($5.4 billion) last year compared with a net loss of almost 1.6 billion euros in 2015.

Volkswagen also announced a clampdown on executive bonuses, an issue that has aroused political passions in Germany during an election year. The company says annual pay for its CEO will in future be capped at 10 million euros, while other executive board members will receive a maximum of 5.5 million euros in one year.

Former VW chief executive Martin Winterkorn had earned 17.5 million euros in 2011, thanks to large bonus payments.