German car giant Volkswagen said it was capping the chief executive's pay package at 10 million euros as it moved to rein in top brass salaries in the wake of the "dieselgate" scandal that has cost the company billions.

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Other members of the board will see their annual remuneration capped at 5.5 million euros, VW said in a statement.

"This reduces the maximum remuneration theoretically possible by up to 40 percent compared with the previous system," it added.