According to a study by the Deutsche Schutzvereinigung für Wertpapierbesitz (DSW) and the Technical University of Munich, the executive boards of the 40 companies listed on the German DAX earned less on average last year than before, despite increased group profits. The total compensation of DAX board members, including group CEOs, averaged €3.34 million, a year-on-year decline of 8.4%. The pay gap with average employees has narrowed and now stands at a ratio of 38 to 1. Still quite a difference. This decrease is explained by the increase in personnel expenses per employee and the decrease in executive compensation. In 2021, top managers still earned 52 times as much as average employees.
Although DAX companies increased sales and profits overall in 2022, the stock market falls depressed the earnings of top executives. Part of the executive board's compensation is variable and linked to the development of the company's share price. The $DBXD (-0,16 %) recorded a loss of 12.3% for the full year 2022.
The study also shared the top 3 salaries, among others:
🥇 $DBK (-1,61 %) Chief executive Christian Sewing with 9.2 million euros
🥈 $VOW (+2,64 %) Chief Oliver Blume with 8.8 million euros + 0.5 million euros as Chairman of the Executive Board of Porsche AG
🥉 $MRK (-1,77 %) Chief Belen Garijo with 8.3 million euros
Pretty fat sums, but nice to see that a woman is also involved.
Do you think that executive salaries will change again in the near future? If so, will they increase or decrease?
