Study on salaries
Top managers have never earned as much as they did last year
Top managers of the DAX, MDax and SDax companies earn more than ever. Women on boards continue to be paid better than men – but the advantage is shrinking.
Despite the economic downturn, the board members of Germany’s major stock exchange companies are earning more than ever before. The remuneration of board members of the companies listed in the Dax, MDax and SDax rose by an average of eleven percent in the 2023 financial year. Including bonuses, they reached a high of 2.65 million euros, according to a new study by the auditing firm EY. The remuneration of CEOs grew particularly strongly by 16 percent to an average of just over 3.7 million euros.
At the same time, women on the boards of DAX, MDax and SDax companies continue to earn more on average than their male colleagues, but the gap is narrowing. According to the study, the income of male board members (excluding CEOs) rose by a good nine percent to 2.26 million euros in 2023, while the salary of top female managers stagnated at 2.42 million euros (plus 0.1 percent). Compared to the previous year, the salary advantage for women has more than halved to around 160,000 euros.
Women are in the minority on DAX boards – and sought after
The total direct compensation consisting of fixed salaries and bonuses of board members who were in office for the entire financial year was analyzed. Women are in the minority on the management boards of the DAX family and are sought after, as many companies are looking for top managers. This drives up compensation.
According to EY, male board members overtook their female colleagues for the first time since 2015 in the top stock market league, the Dax. While men’s salaries rose by an average of around 260,000 euros in 2023, women’s salaries fell by around 150,000 euros. This meant that the men’s lead was around 290,000 euros with a good 3.3 million euros in compensation.
Big differences in profit development
“The very positive salary development of many board members last year may seem surprising at first glance, as the DAX companies overall recorded rather stagnating sales and profits”says EY partner Jens Massmann. However, the picture is mixed: while some companies struggled with strong headwinds, others achieved high profits. In addition, many companies tie their remuneration to sustainability goals regardless of their economic situation and must also be able to compete internationally in the competition for top managers.
Recently, insurers posted record profits and banks benefited from increased interest rates. The highest-paid DAX manager in 2023 came from the ailing auto industry: VW boss Oliver Blume earned around 10.3 million euros, according to the investor protection association DSW. EY does not name any names in the study. According to the analysis, CEOs in the Dax received an average salary of 5.7 million euros.
DPA
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Source: Stern
