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These German CEOs earn the biggest salaries compared to their workers

The CEO of HeidelbergCement earns 190 times the salary of his average employee - and he's not even the highest earning boss in Germany.

Published: 4 April 2017 11:43 CEST
These German CEOs earn the biggest salaries compared to their workers
Bernd Scheifele, CEO of HeidelbergCement. Photo: DPA

In 2016, CEOs at Germany’s biggest companies earned on average 93 times as much as regular employees, according to an analysis published by business newspaper Handelsblatt on Tuesday.

Bernd Scheifele, CEO of HeidelbergCement, was the boss with the most unequal relationship to his workers. Earning €8.4 million a year, Scheifele pocketed 190 times the average salary at the company, which stood at €44,300.

But the cement chief was far from the highest earner among the 30 leading companies on the DAX stock exchange. That prize went to Bill McDermott, CEO of software developer SAP, who raked in €14.3 million last year.

Nonetheless, due to the fact that employees at SAP earn well – on average €121,500 – the New York-born businessman “only” earned 118 times the wage of his average employee.

One salary discrepancy which is likely to stick in the craw of the average worker is that of Matthias Müller, CEO of Volkswagen since the dieselgate scandal erupted in 2015. Müller earned €10.1 million in 2016 – 170 times the average salary at the company, and the second highest discrepancy behind Scheifele.

The car manufacturer announced plans to axe 30,000 employees in 2016 in an attempt to restructure after it was caught deceiving US regulators on the nitrogen oxide emissions of its diesel engines.

In February VW pledged to cap its CEO's salary below €10 million.

SEE ALSO: These are the German regions where the economy is really booming

At the opposite end of the list is the boss of another tarnished German brand.

Deutsche Bank CEO John Cryan did not take a bonus payment to his salary of €4.7 million in 2016 and thereby earned 39 times the average income at the financial giant.

Deutsche Bank is engaged in a long struggle to free itself from thousands of legal cases worldwide relating to its past conduct, and in December agreed a $7.2-billion deal with the US Department of Justice relating to mortgage-backed securities trading in the run-up to the financial crisis.

At the same time, the bank is attempting a massive restructuring that will see it shift focus from global financial markets to traditional banking for businesses and households in Germany.

Trade unions have reacted angrily to the news that CEOs are still earning so much in relation to workers.

A joint statement published last week by employee committees from Siemens, BMW, Volkswagen, Daimlaer and other major firms said that “the relationship between employer and employee is out of kilter.”

The statement pointed out that CEO salaries had risen from an average of €5 million to €6.4 million in a decade, despite one of the biggest financial crises in decades.

Jörg Hofmann, head of the IG Metall union, told Handelsblatt that “practical regulations are urgently needed.”

Experience shows that “effective upper limits on salaries are only enforced when employee committees have a strong voice,” he added.

CEO salaries are likely to become a theme of September's national election.

The Social Democrats (SPD) are calling for a legal ratio of employer to employee salaries to be agreed upon with employer federations and unions.

With AFP

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WORKING IN GERMANY

Which Bavaria-based companies regularly hire English speakers?

Bavaria is no doubt a beautiful state with a strong economy, but can be a hard place for non-German speakers to integrate. The Local takes a look at job opportunities in Germany’s southeastern 'Free State.'

Published: 7 February 2024 10:54 CET
Updated: 10 February 2024 08:20 CET
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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