Volkswagen said its former chief executive Martin Winterkorn has agreed to pay 11.2 million euros (13.6 million US dollars) 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 carmaker also said it would be receiving 270 million euros from liability insurance against loss from the actions of directors and officers.
The company said in a statement that Mr Winterkorn “breached his duties of care” as chief executive, based on an extensive investigation by a law firm commissioned by the company.
The US Environmental Protection Agency caught Volkswagen using software that let the cars pass emissions tests and then turned off air pollution controls during normal driving.