Despite higher profits, the top managers of the German companies listed on the main German stock index DAX earned less on average in the previous year than in 2021. The board members of the 40 DAX companies including the heads of the groups received an average of 3.34 million euros – and so 8.4 percent less than one year previously.
This is according to an evaluation published on Monday by the German Securities Protection Association (DSW for short) and the Technical University of Munich. The salary difference with an average employee has therefore decreased to 38 times, “which can be explained by the higher personnel costs per employee and the lower remuneration of the board of directors”, explains scientist Gunther Friedl of the Technical University of Munich. In 2021, top executives still earned 52 as much as the average worker.
DAX collapsed 12.3 percent last year
According to the information, the DAX companies had increased their sales and profits in general last year. But stock market falls as a result of Russia’s war of aggression in Ukraine depressed earnings on the upper floors. Part of the remuneration of the Executive Board is variable and linked to the development of the company’s share price. The leading German index, the DAX, lost 12.3 percent over the full year.
Head of Deutsche Bank as frontrunner
According to the study, Deutsche Bank head Christian Sewing (pictured above) was the leader with total compensation of €9.2 million, followed by VW boss Oliver Blume with €8.8 million. Blume earned another 0.5 million euros as CEO of Porsche AG. According to data from DSW, the boss of the chemical and pharmaceutical giant Merck, Belen Garijo, came third with 8.3 million euros.
There are several studies on executive pay, the results of which sometimes differ due to different calculation methods. The DSW has been presenting the evaluation regularly since 2000. Both the fixed salary and the short-term and long-term variable remuneration are included.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
