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German politicians call for fat cat cap

A Swiss vote on Sunday in favour of giving small shareholders the right to cap executives' pay has prompted German politicians to call for a similar law in this country.

Published: 4 March 2013 09:00 CET

German politicians call for fat cat cap

Photo: DPA

More than two-thirds of Swiss voters came out on Sunday in favour of a new law that would allow shareholders to decide what salaries the top executives should get, and get rid of “golden handshakes” – bonuses for top managers departing or arriving on the board.

The result prompted several German politicians to come out in favour of a similar law not only in Germany, but in Europe.

“The referendum is an important step in the right direction,” Joachim Poß, deputy parliamentary leader for the centre-left Social Democratic Party (SPD), told the Neue Osnabbrücker Zeitung. “The result should be understood as an encouragement for the introduction of a European directive.”

Poß admitted that the Swiss law could not be imported wholesale as it is, but the principle was important. “People no longer accept this perverse bonus system that exists not only in banks but in industry generally,” he said.

Michael Fuchs, economic policy spokesman for Chancellor Angela Merkel’s Christian Democratic Union, also welcomed the Swiss initiative. “It’s a way of making sure that salary decisions are made by the owners of companies, not by the state,” he told the Bild newspaper.

“There is no explanation other than greed for the fact that a DAX board member earns 54 times as much as a worker,” Katja Kipping, head of the socialist Left party told the WAZ newspaper group. She said that Germany needs a debate on the “limits of inequality.”

Gerhard Schick, finance policy spokesman for the Green party, also called on the German government to send a signal. “We need stronger rules against salary excesses in Germany,” he said.

The Local/DAPD/bk

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Which Bavaria-based companies regularly hire English speakers?

Munich ranks third in German cities with the highest total GDP, behind Berlin and Hamburg, but in terms of GDP per capita, it’s higher than both of them.

It also consistently ranks high, often highest, in terms of average household income.

As of 2023, nine of the 40 companies listed on DAX, Germany’s stock index, were based in Bavaria. Seven of those are based specifically in Munich.

While Frankfurt is commonly known to be Germany’s business capital, Munich can claim the title of Germany’s insurance capital, which is saying something, as Germany is home to some of the largest insurance firms in the world, like Allianz.

Beyond the state’s capital city, a number of international companies are based elsewhere in Bavaria, particularly in the Franken region, near Nuremberg.

Which companies actively hire English speakers?

Bavaria, and Munich in particular, is home to a number of companies at the forefront of international business. But the state is known for its traditional, sometimes conservative, culture, which affects its business culture as well.

Whereas companies embracing English as their primary business language are easy to find in Berlin, the practice is less common in the south. That said, there are some notable exceptions.

Sportswear giants, Adidas and Puma, both have their headquarters near Nuremberg in Herzogenaurach, and regularly recruit English speaking international talent.

“As an international company, our teams reflect the rich diversity of our consumers and communities,” Jon Greenhalgh, Senior Manager Media Relations for Adidas told The Local. “Fostering a culture of inclusion where we value and leverage differences, ensures that we can authentically engage with our employees and truly connect with our consumers.”

He added that around 40 per cent of Adidas’ Germany-based employees are foreign nationals, from over 100 different countries.

Siemens and BMW rank among Bavaria’s top employers, and are also known to hire their fair share of foreigners.

“In Germany, we recently had around 2,000 open positions,” Konstanze Somborn told The Local on behalf of Siemens AG.

He added that Siemens operates in 190 countries. “That is why we value international teams very much…English as a common language is very usual.”

READ ALSO: ‘Which German companies want to hire foreigners?’

Similarly, BMW hires workers from a variety of backgrounds.

“Every year, we hire lots of internationals and welcome them to the BMW Group,” Dr. Hans-Peter Ketterl, a press spokesman for BMW Group told The Local.

But not all of these positions are available to non-German speakers.

Ketterl added that BMW’s working language is German in the country, even though, “English is an indispensable entry requirement as the second corporate language in many areas of the company.”

Check job boards and follow best practices

If it’s your first time applying for jobs in Germany, make sure to change your resume to the German format, even for English positions.

While Germany is home to its own job boards, like Xing, LinkedIn is probably the best place to start. In addition to searching for positions based in your preferred location, you can check relevant groups, like Munich Startups, to broaden your horizons.

The English Jobs in Germany website is also a good resource to start with.

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