CEO salaries hit record highs in Germany despite economic pressure

Despite ongoing economic pressures, executive pay at Germany’s largest publicly listed companies continued to rise in 2024. According to a new study by the German Association for the Protection of Securities Ownership (DSW) and the Technical University of Munich, board members at DAX-listed firms earned an average of €3.76 million, a 3% increase from the previous year.

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At the top of the list is Volkswagen CEO Oliver Blume, who received €10.6 million, breaking what some consider a psychological ceiling for executive pay. Not far behind was Adidas CEO Björn Gulden with €10.3 million, and Deutsche Bank’s Christian Sewing with €9.87 million.Blume’s pay package is particularly notable: nearly 75% of his compensation came from variable components like bonuses and performance incentives, not just a fixed salary. On average, DAX executives receive about 70% of their income from such variable pay structures.

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While these figures might excite shareholders, they’ve sparked fresh debate over fairness and social perception. DSW Managing Director Marc Tüngler emphasized that €10 million isn't just a round number, it carries symbolic and societal weight. “The ten-million-euro threshold is a meaningful mark because it also reflects social peace in the country,” Tüngler said, referring to the broader public’s perception of fairness.

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But he warned that this “sound barrier” is being quietly and steadily eroded, as more companies normalize such high levels of pay. In fact, under the German Stock Corporation Act (AktG), the average cap on CEO compensation now sits at €10.4 million, a sign that this symbolic limit is becoming less relevant in practice. Tüngler's concern is that continued increases in executive compensation may trigger social discontent, especially during times of economic strain. Yet shareholder meetings this year at major companies like RWE, Deutsche Telekom, and Deutsche Post have already approved further pay increases.

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As the wage gap between executives and average workers continues to grow, this rise in boardroom compensation is likely to fuel public debate about fairness, accountability, and corporate priorities, especially in economically uncertain times.

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