Coalition wants an executive salary cap in Germany

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.