Editions:  Austria · Denmark · France · Germany · Italy · Norway · Spain · Sweden · Switzerland

Coalition wants an executive salary cap in Germany

Share this article

18:23 CEST+02:00
The conservative German Christian Democratic Union (CDU) wants to cap salaries of top business leaders, joining the Social Democratic Party (SPD) with which it governs the country, German Handelsblatt daily said on Monday.

“The fact that remuneration must correspond to the true value of performance constitutes an essential element of the social market economy,” CDU financial expert Otto Bernhard told the paper.

The CDU wants to present a common proposal with the SPD on the question in late September, the newspaper said.

The Social Democrats have already proposed a series of measures, including one to limit tax deductions to €1 million ($1.56 million).

A government spokesman said later at a press conference that it sought to “reach agreement by the end of the year” on a series of rules concerning the issue.

He added that Chancellor Angela Merkel has expressed a “certain scepticism” about the possibility of controlling executive pay through legislation. The amount of pay earned by top business leaders has become a controversial issue, especially among politicians, in a country that does not have a general minimum wage.

Wendelin Wiedeking, head of the car maker Porsche is the highest paid German boss, with €60 million in earnings last year.

Get notified about breaking news on The Local

Share this article

From our sponsors

Change the world with a master’s degree from Sweden’s Linköping University

Master’s students at world-leading Linköping University (LiU) aren’t there simply to study. They solve real-world problems alongside experts in fields that can create a better tomorrow. Do you have what it takes to join them?