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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

Four steps to take straight away after losing your job in Germany

Losing a job can be a nightmare situation for foreigners in Germany - but following these simple steps will get you back on your feet in no time.

Published: 10 September 2024 16:34 CEST
Updated: 15 September 2024 08:14 CEST
Four steps to take straight away after losing your job in Germany

In times of economic downturn, layoffs are far from unusual – but that doesn’t make it any more difficult for the people who find themselves suddenly left without work.

For foreigners in Germany, the situation is even more frightening. You may wonder whether your residence status is in jeopardy, how hard it will be to find another position, and whether you can support yourself while you look for another job.

Though it may be hard to think clearly at a time like this, following these four simple steps will set you in good stead to move forward – and hopefully, it won’t be long before another dream opportunity comes your way. 

1. Negotiate your terms 

Before signing or agreeing to anything, it’s crucial that you’re familiar with your rights and understand how much notice your employer has to give you and what kind of settlement you may be owed.

Generally, the rule of thumb is that you get half a month of severance for every year you worked at the company. That said, higher settlements can be negotiated in return for signing a termination agreement (Aufhebungsvertrag), so you may want to seek legal advice before settling. 

Even during a probationary period, your employer will also have to give you a certain amount of notice before your last working day. During the interim, you can either work for the company or be put on what is known as gardening leave in English, where you stay home but are paid as if you were working.

This can all be negotiated as part of a termination agreement, so you should think carefully about what works best for you and consider speaking to your labour council (Betriebsrat) or a legal specialist before making any firm decisions. You should also be aware that you have no obligation to sign any agreement and can legally dispute the layoff if you want to. 

READ ALSO: Can I get unemployment benefits in Germany if I quit my job?

2. Get all the necessary documents from your employer

Once the terms of the layoff are final, ensure that your employer gives you all the necessary documents you need to navigate the next phase of German bureaucracy.

The main two to think about first are the confirmation of work (Arbeitsbescheinung) and the confirmation of your holiday entitlement (Urlaubsbescheinigung).

The first can be sent to the Agentur für Arbeit (jobcentre) as proof of your last job and recent layoff, while the second will help your next employer calculate your vacation days for the rest of the year.

An Arbeitszeugnis, or German letter of reference

An Arbeitszeugnis, or German letter of reference. Photo: picture alliance/dpa/dpa-tmn | Zacharie Scheurer

On top of these documents, you’ll want to ask your employer for a letter of reference (Arbeitszeugnis), which is useful for finding a new job in Germany.

You should also keep hold of your last payslip and statement of earnings (Lohnsteuerabrechnung), which are helpful for tax purposes and may also be requested by the Agentur für Arbeit.

Speaking of which… 

3. Register as unemployed with the Agentur für Arbeit

As soon as you know that you are soon to be unemployed, you should register as a jobseeker with the Agentur für Arbeit. To get full unemployment benefits, you usually have to do this within three days of receiving your termination notice or at least three months before leaving.

Depending on what type of residence permit you’re on, you may or may not be entitled to long-term unemployment benefits (ALG II), but most employees are able to get unemployment insurance (ALG I), which covers a proportion of your former salary while you look for a new role.

It’s important to be a little bit careful here, as claiming long-term unemployment benefits (ALG II) can affect any future citizenship applications. Any severance pay you agree to can also result in you losing some months of unemployment benefits, so these are all factors you will have to consider while deciding on the best way forward. 

READ ALSO: What happens to your work permit if you lose your job in Germany?

4. Inform the immigration office 

If you’re on a residence permit that is linked to your job in some way, like a Blue Card or work visa, you’ll need to inform the immigration office about your change in circumstances as soon as possible.

This should be done in writing, and in German, within two weeks of receiving your termination notice.

You should include all relevant personal information, such as date of birth, residence permit type, and nationality, as well as the date of your final day at work. As proof of the layoff, you should also enclose a copy of your termination agreement or a letter from your employer. 

People enter the immigration office

For foreigners who move to Germany and settle in Berlin, a visit to the Berliner Landesamt für Einwanderung (LEA) is ultimately unavoidable. Photo: picture alliance/dpa | Britta Pedersen

In most cases, the immigration office will give you between 3 and 12 months to look for a new job. If they give you a shorter period, be aware that you may be able to negotiate an extension later on if you are struggling to find work through no fault of your own.

Above all, stay positive. Though it may feel like one door has closed, another one is sure to open. This being Germany, you may just have to wade through a sea of paperwork to get there.

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