VW has recovered €270m from insurers over the diesel emissions scandal, raising questions about the implications for corporate governance.
Volkswagen's board failed to act at a critical juncture in the emissions scandal. Image: Gyuszko-Photo/Shutterstock.com
Minor tremors were recently sent through the corporate governance world over an insurance claim. Big yawn, you may think, but this claim involved VW recovering €270m from insurers for the behaviour of former executives over the “dieselgate” emissions scandal that shook the automotive industry back in 2015.
The sum is large, though overshadowed by the estimated €35bn cost to VW of the scandal. Even so, the payout has raised questions with some viewing it as an unwelcome development for corporate governance, while also potentially having significant implications for the future of D&O (directors' and officers') insurance.
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