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No Bonus for Vestas Wind Systems Management

Vestas wind turbine, Dithmarschen.

Image via Wikipedia

Vestas wind system have in the past have had real problems with customer satisfaction. The main problems have been with the gear system in the wind turbines and in the past they have been the source of real challenges for Vestas customers.    

In the just released annual report the company reported a customer satisfaction of 64 but this is not good enough when the target was for 70. Vestas’ customer satisfaction, not deliver the expected growth in 2010 and therefore contributed to an absent bonus for Vestas management. 

Vestas in 2010 conducted a customer satisfaction survey in which 986 persons from 348 customers answered the Danish wind giant. And the answers were not positive enough. 

Customer Satisfaction Index was ended in the index 64 and thus unchanged from 2009, where satisfaction rose by 12 index points. 

Five sales business units went forward and two went back, said Vestas annual report. Now reads the target for 2011 at an increase in customer satisfaction index to 72 and a further increase to “at least 75”. 

“It is on level with the best in the world,” says Vestas. 

The bonus for 2011

As the targets that triggered the bonuses for 2010 was not met by Vestas management they will have to wait another year and try again.
The customer satisfaction index of 72 counts 20 per cent of the corporate bonus target. In addition, counts an operating margin of 8.4% counts for 35%, a free cash flow of 200 million euro 30% and a turnover of 7 billion euro 15%. 

In 2009 Vestas managed to raise customer satisfaction which was mainly attributed to better performing mills, an improvement in the cooperation with customers, better internal process management and launching of new products and services. 

“All actions that are helping to lay the foundations for the necessary growth in turnover and profitability in the coming years,” said Vestas.