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Volkswagen vs. Porsche. A Power-Index Analysis

  • Roland Kirstein

    ()

    (Faculty of Economics and Management, Otto-von-Guericke University Magdeburg)

After Porsche SE took over Volkswagen AG, its supervisory board consists of three groups: The Porsche shareholders hold 6 seats, while the 324,000 Volkswagen employees and the 12,000 Porsche employees will be represented by 3 delegates each. This paper perceives each of these three groups as unitary players and presents a power-index analysis of this supervisory board. It shows that, unless the Porsche employees are made completely powerless, Porsche and VW employees will have identical power regardless of the actual distribution of seats on the employees' side. This analysis demonstrates that the request of the Volkswagen employees (for more seats than the Porsche employees in the future supervisory board) is unfounded.

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File URL: http://www.ww.uni-magdeburg.de/fwwdeka/femm/a2009_Dateien/2009_07.pdf
File Function: First version, 2009
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Paper provided by Otto-von-Guericke University Magdeburg, Faculty of Economics and Management in its series FEMM Working Papers with number 09007.

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Length: 17 pages
Date of creation: Mar 2009
Date of revision:
Handle: RePEc:mag:wpaper:09007
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Web page: http://www.ww.uni-magdeburg.de

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  1. R J Johnston, 1978. "On the measurement of power: some reactions to Laver," Environment and Planning A, Pion Ltd, London, vol. 10(8), pages 907-914, August.
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