Former Porsche CEO Wiedeking earned 115 Million $ in 2007

"Fred (FreddsterExprs)" (freddsterexprs) 01/16/2015 at 17:11 • Filed to: Porsche, Wendelin, Wiedeking, Salary

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One of the great things about court trials is that they give us, the poor public, rare access to facts surrounding companies, celebrities and top earners. Wendelin Wideking (What a name. I wouldn't be surprised if it was stage name) is currently on trial for alleged market manipulation surrounding Porsche's attempt of buying Volkswagen.

As part of the documentation process, it was revealed how much he earned during that period. In 2007/2008 he received 2 million euros as a base salary, half a million in some sort of royalties and a whopping 98 million euros of profit share. This huge payout (115 million $ in total as of now) has a historic foundation: back in 1992 Wiedeking pitched his private assets as collateral to negotiate a line of credit for then near bankrupt Porsche. The profit share was awarded as a sign of appreciation for the bold move, and it in the end all more than payed out.

If you're wondering what the super rich head of a legendary sportscar brand is up to now apart from being sued: !!!error: Indecipherable SUB-paragraph formatting!!! .

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Manuél Ferrari > Fred (FreddsterExprs) 01/16/2015 at 17:12

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fuck this guy!

Fred (FreddsterExprs) > Manuél Ferrari 01/16/2015 at 17:15

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I'm not sure. On one hand I don't see why anyone who's taking on risk shouldn't be rewarded. And he also saved Porsche when they were about to a) go bust or b) be bought by Mercedes (which could've been super cool).

On the other hand he messed up during the VW sale and made Porsche a part of VW. So yeah.

Lekker > Fred (FreddsterExprs) 01/16/2015 at 17:15

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Comment from the article:

"The Large Pepperoni GT3 will have less pepperoni and cheese than the regular large pepperoni, and to reduce weight they've replaced the crust with carbon fiber. You can have that stripped down high performance version for 70% more than the basic model."

Fred (FreddsterExprs) > Lekker 01/16/2015 at 17:16

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Is there also going to be a big, fat ugly Cayenne Calzone that pays for the regular pizza and is hated by everyone?

Manuél Ferrari > Fred (FreddsterExprs) 01/16/2015 at 17:21

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That last part is why I don't like him!

That was way too aggressive to try to buy VW.

I hate that Porsche is fully owned by VAG now.

In 20 years new Porsches will not be Porsches. They will have Porsche badges on them. But the driving experience won't feel as unique as it does now because of the platform sharing.

Take Lambo for example. The new V10 car feels a lot more Audi-ish to reviewers than the Gallardo did.

Fred (FreddsterExprs) > Manuél Ferrari 01/16/2015 at 17:27

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I think that small manufacturers that want to build anything else but million dollar hyper cars need a partner. Porsche so far is doing better under the VW umbrella, the Macan even is a really good looking car. The question is how much brand identity is going to be lost, I agree. It's one reason why I never liked Audis - they are just ugly, aggressive, undesteering, heavy VWs to me.

Manuél Ferrari > Fred (FreddsterExprs) 01/16/2015 at 17:30

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It will be interesting to see what happens.

I think how much brand identity they lose will totally depend on politics.

Audi is going to push to use more and more of Porsche's technology to make their cars handle better. If the Audi execs win political battles then Audis will get better and more Porsche-like. Which is great for Audi, but not for Porsche.

CAcoalminer > Fred (FreddsterExprs) 01/16/2015 at 17:42

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Most people would be surprised at how much top executives make in bonuses.

Fred (FreddsterExprs) > CAcoalminer 01/16/2015 at 17:43

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I knew they make a few millions, sometimes double digits, but 100+ is a whole fucking lot. That's a number I associate with the financial industry.

CAcoalminer > Fred (FreddsterExprs) 01/16/2015 at 17:46

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Triple digits isn't very common but double is.

Fred (FreddsterExprs) > CAcoalminer 01/16/2015 at 17:47

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Well, in Germany double digits are reserved for the big and super successful DAX companies. If I recall correctly Zetsche barely made 10.

CAcoalminer > Fred (FreddsterExprs) 01/16/2015 at 17:49

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I'm referring to the U.S.

area man > Fred (FreddsterExprs) 01/16/2015 at 17:49

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So, just a quick note, back in 2007/8 the exchange rate was more like $1.30-$1.40 per euro, meaning he actually earned something closer to $135.5 million.

Fred (FreddsterExprs) > area man 01/16/2015 at 17:50

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True, and one would probably have to account for inflation and purchasing power. Could be close to 140 million $.

area man > Fred (FreddsterExprs) 01/16/2015 at 17:51

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You're right, $1 in 2007 equals about $1.10 today.

Fred (FreddsterExprs) > CAcoalminer 01/16/2015 at 17:52

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I thought so. That's why Wideking's earnings are so extraordinary if we compare them to his fellow countrymen.

CAcoalminer > Fred (FreddsterExprs) 01/16/2015 at 17:54

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I understand.

macanamera > CAcoalminer 01/16/2015 at 18:15

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Sounds like someone is speaking from experience...

CAcoalminer > macanamera 01/16/2015 at 18:23

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Nope. I learned everything from TV and the internet.

macanamera > CAcoalminer 01/16/2015 at 18:26

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I'll bet you were in the oil business.

CAcoalminer > macanamera 01/16/2015 at 18:31

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Sort of. One of my first ventures was leasing gas stations.

ZHP Sparky, the 5th > Fred (FreddsterExprs) 01/16/2015 at 18:56

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That's insane. CEO risk, whatever blah blah. These people aren't held individually liable for any of their decisions as CEO - so they're not taking any personal risk outside of their fiduciary duty, to truly "deserve" any hefty payout for essentially doing their job. Cap those damn bonuses at a couple of million, max - that's more money than any human could conceivably need or need to be rewarded for ANY task (literally, any task).

I'm sure the shareholders, you know the actual owners of the company, would much rather have that money being disbursed out to them, invested in the future of the business, or hell - even given a few grand a year raise to all the other employees of the company in addition to giving this "Weed King" a few million as a pat on the back.

macanamera > CAcoalminer 01/16/2015 at 18:56

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So you were always a business owner for the most part? Did you ever have a corporate gig?

Fred (FreddsterExprs) > ZHP Sparky, the 5th 01/16/2015 at 19:15

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Well, he did risk his personal belongings. All of them actually. And that was when Porsche was in a really, really bad shape.

ZHP Sparky, the 5th > Fred (FreddsterExprs) 01/16/2015 at 19:25

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I'm confused. He was president and CEO of the company, which is publicly traded. If the company fails, he no longer has a job - just like any other employee (but maybe gets a much sweeter termination package).

If as a result of his management and decision making, the company were to fail - there is no way any creditors or shareholders could come after his personal wealth as restitution. The only ownership interest he has in the company is whatever stock he bought/was awarded/owned.

Am I missing something here where he bought the company with his own money, owned it himself, and risked it all, entirely on his own?

CAcoalminer > macanamera 01/16/2015 at 19:34

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For the most part, yes. Initially, I did work for others while I was working on my own businesses.

I'm not sure what you mean by "corporate gig?"

Fred (FreddsterExprs) > ZHP Sparky, the 5th 01/16/2015 at 19:58

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Here's what happened: Porsche was in big trouble. He, being a rich man when he took over, went to a few banks and brought in all his personal belongings to give the company he was managing a line of credit to keep it afloat. He then went on bring Porsche back to glory and made it one of the most profitable car companies on the planet. His risk was not rescuing Porsche, the company not being able to repay the credit and therefore his estate being seized. In return, the owners of Porsche awarded him a profit share for the future. How is there none of his risk?

macanamera > CAcoalminer 01/16/2015 at 20:13

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I meant like...working a management position for a big company or something. As opposed to having your own ventures.

CAcoalminer > macanamera 01/16/2015 at 20:27

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Ok. No, I have never worked for a large corporation that I did not start. Unless, we are counting being on a BD.

macanamera > CAcoalminer 01/16/2015 at 21:28

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What is BD? And what large corporations did you start?!

CAcoalminer > macanamera 01/16/2015 at 21:35

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"BD" stands for "Board of Directors." They were in banking and construction.