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Top German CEOs earn below European average

The chief executives of Germany's 30 biggest companies took home €5.3 million ($6.9 million) on average last year, a 3.0-percent rise from 2011, but still below the European average, a study showed Tuesday.

Published: 19 March 2013 14:23 CET

Top German CEOs earn below European average

Photo: DPA

Based on the annual reports of 23 of the 30 companies in Germany’s blue-chip DAX stock index, the chief executives’ pay ranged from €2.1 million for Lufthansa chief Christian Franz to €14.5 million for the Volkwagen CEO Martin Winterkorn, the study by consultants Towers Watson said.

Winterkorn was therefore once again the highest paid chief executive in Germany, even if his salary was down 13 percent from the previous year due to new limits on bonuses introduced by the carmaker.

The study revealed that 10 DAX company CEOs took pay cuts of as much as 27 percent while 11 received pay hikes of as much as 32 percent.

By comparison, the companies’ underlying profits, as measured by earnings before interest and tax (EBIT), rose by 14 percent on average, the study revealed.

The issue is currently a hot-button topic in Germany at the moment following a Swiss vote to curb executive pay.

The country’s most powerful union IG Metall is calling for a 5.5-percent pay rise for 3.7 million workers in the electrical, engineering, automobile and metalworking sectors in the upcoming wage round, a demand dismissed by employers as excessive.

German bosses earned a lot less than their European counterparts, the study continued, with CEOs of Dow Jones Stoxx 50 Europe companies taking home an average €7.5 million last year, the study showed.

AFP/mry

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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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