Former VW boss to pay firm $13 million over diesel scandal

Volkswagen says the executive in charge during the company's diesel scandal will pay the firm 11.2 million euros ($13.6 million) in compensation

FRANKFURT, Germany -- Volkswagen said Wednesday that former CEO Martin Winterkorn has agreed to pay 11.2 million euros ($13.6 million) in compensation for what the company called his failure to quickly get to the bottom of the scandal over diesel engines rigged to cheat on emissions tests. The German automaker also said it would be receiving 270 million euros ($329 million) from liability insurance against loss from the actions of directors and officers. The company said in a statement that Winterkorn “breached his duties of care” as CEO, based on an extensive investigation by a law firm commissioned by the company. The U.S. Environmental Protection Agency caught Volkswagen using software that let the cars pass emissions tests and then turned off air pollution controls during normal driving. Winterkorn, who has denied wrongdoing, resigned a few days after the Sept. 18, 2015 notice of violation from the EPA. Volkswagen has apologized and paid more than 31 billion euros in fines, recall costs and compensation to car owners.