F1 News: Toto Wolff Reveals Unconventional Aspect Of Mercedes Team Principal Contract
Toto Wolff's recent contract extension as Mercedes team principal is unconventional because it lacks a performance clause. This means that regardless of the team's results, Wolff won't be held accountable in any manner, until the end of 2026.
In several Formula 1 contracts for both drivers and team principals, there are clauses based on performance. In cases where individuals are not meeting expectations, teams often have the option to terminate contracts prematurely. This is especially common in long-term agreements.
Yet, in the instance of Wolff and Mercedes, there is a significant distinction. The Austrian team boss, aged 52, possesses a thirty-three percent stake in the team. This automatically renders him more accountable, as his actions and decisions within the team will directly and indirectly impact his returns.
But the absence of a performance clause in his contract also prevents him from being liable to offer Lewis Hamilton a championship-winning F1 car that can help him win his eighth world title. Mercedes has struggled to win races since the inception of the ground effect era, courtesy of the development route the team took with its car.
Wolff's contract extension until the conclusion of 2026 also involves leading the team into the era of Formula 1's new regulations, where F1 cars will be powered by an equal combination of internal combustion and electric power.
Wolff revealed that he's never had a performance clause on his contract in the past, revealing that work happens based on trust. Speaking to The Daily Telegraph, he said:
"I've never had a performance clause.
"You either trust each other or you don't. And we are aligned as shareholders."
Assuming the position of team principal at Mercedes in 2013, Wolff has played a key role in securing eight constructors' championships and seven drivers' championships for the team.
