Porsche “Gives” Employees A Voluntary Bonus

Porsche continues to grow meeting its €4.4 billion target for the fiscal year 2019. Then there’s 2020?

Porsche* is combining an optional bonus to its employees with an appeal for donations to support the “Porsche aid” program. The bonus of  €9,000 Euro will be paid out to the Porsche workforce for the 2019 financial year; €700 will be available as a special contribution to the Porsche VarioRente or to the individual pension plan. Employees are encouraged to make voluntary donations to charitable organizations.

It’s another example of the power of unions working with corporations to the benefit of members and society at large. (Porsche Proposes 41% Dividend Rise at May Annual Meeting)  “The success of our company is only possible through the work of our colleagues. All of them have worked for Porsche with great commitment in the past year. It is part of our Porsche culture that the workforce is also rewarded for this,” said Werner Weresch, Chairman of the General and Group Works Councils of Porsche AG.

Porsche has defined six fields of action and increased its donation volume by €5 million: the expenditure for food donations to the food banks in the vicinity of the company locations was doubled to €200,000. The program also allows for the procurement of urgently needed medical equipment as well as the support of the crisis teams of Baden-Württemberg and Saxony with project managers and IT specialists. It also includes the targeted voluntary work of Porsche employees with charitable organizations.

*The group result after tax of Porsche Automobil Holding SE (Porsche SE), Stuttgart, rose to €4.4 billion in the fiscal year 2019, an increase of 26.3% compared to the prior year (€3.5 billion). Porsche AG increased deliveries, sales revenue and the operating result before special items to new record levels. The company handed over 280,800 vehicles to customers in 2019, corresponding to an increase of !0% compared with the previous year. The return on sales before special items was 15.4%. In the same period, the workforce grew by ten percent to 35,429 employees. This development was significantly influenced by the result from the investment in equity of Volkswagen AG of €4.4 billion (prior year: €3.6 billion). As of 31 December 2019, group net liquidity added up to €553 million (prior year: €864 million). This decrease is primarily due to the acquisition of ordinary shares in Volkswagen in the first quarter of 2019. (Porsche Proposes 41% Dividend Rise at May Annual Meeting)