Pay back to pre-crisis levels for top bosses

Wages earned by top German bosses have climbed back to pre-crisis levels but are tied more closely to a company's longer-term performances, a private study showed on Wednesday.

Pay back to pre-crisis levels for top bosses
Volkswagen's Martin Winterkorn raked in more some €9.33 million. Photo: DPA

Average pay for the head of a company listed on Frankfurt’s DAX index of German blue-chip stocks amounted to €4.6 million in 2010, an annualised rise of 21 percent, the advisory group HKP said.

Profit per share reported by the same groups leapt by 124 percent over the same period, it noted.

In 2008, the year the global financial and economic crisis took a sharp turn for the worse with the bankruptcy of the US investment bank Lehman Brothers, average pay for top German executives was around €4 million, HKP said.

Last year, variable pay such as bonuses paid according to company results, and settled over several years, increased to 45 percent of the total on average from 35 percent in 2008, according to the study’s findings.

In the meantime a German law on executive pay, passed following an agreement by the G20 group of highly developed and emerging economies, took effect in 2009.

Last year the best paid German executive from a publicly listed company was Martin Winterkorn of Volkswagen, who is to receive €9.33 million, a gain of 41 percent on the year.

He was followed by Siemens boss Peter Löscher with €8.9 million (plus 27 percent), Deutsche Bank’s Josef Ackermann with €8.8 million, and Dieter Zetsche of Daimler, whose pay more than doubled to €8.7 million.

The headline figures could decrease however, because much of those sums will be paid over several years and depend on sustained results by the companies concerned.

At the bottom of the DAX pay scale was Martin Blessing of Commerzbank, who earned €500,000 in 2010, the same as the previous year, because his salary was capped when the bank received several billion euros in state aid.


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Reader question: Is it ever legally too hot to work from home in Germany?

Germany has regulations on working during a heatwave - but does that also apply to people who work remotely? We take a look.

Reader question: Is it ever legally too hot to work from home in Germany?

The number of people working from home shot up during the Covid pandemic, and though employees no longer have the right to work remotely by law, many have chosen to stick with more flexible arrangements and set up a home office at least part of the week.

This is great news for people who enjoy a lie-in more than a long commute, but there are some downsides. One major issue is that it’s not always clear how Germany’s strict employee protection rules actually apply in a home setting. The rules for working during a heatwave are a good example of this.

How does Germany regulate working in extreme heat? 

By law in Germany, employers are responsible for creating a safe environment for their workers. This means that they should try and keep the temperature below 26C at all times and are legally obliged to take action if the temperature goes above 30C. 

That could include putting blinds on the windows to prevent the glare of the sun, installing air conditioning systems or purchasing fans. In some cases – such as outdoor manual labour – it could also involve starting and finishing earlier in the day. 

And in really high temperatures, employers may simply decide to call the whole thing off and give their employees a ‘hitzefrei’ day – basically a heat-induced day off – to go and cool down in a lake. However, business owners are generally given free rein to decide how hot is too hot in this instance (except in the case of vulnerable workers). 

READ ALSO: Hitzefrei: Is it ever legally too hot to go to work or school in Germany?

Do the heat rules apply to ‘home office?’

Unfortunately not. In most cases in Germany, the company isn’t directly involved in setting up the workspace for an employee that works from home, aside from possibly providing a laptop or phone for remote use. 

“The occupational health and safety regulations regarding room temperature do not apply in this case,” labour law expert Meike Brecklinghaus told German business publication T3N. “This is because the employer does not have direct access to the employee’s workplace and in this respect cannot take remedial action.”

That means that on hot days, it’s the employee’s own responsibility to make sure the environment is suitable for working in. 

woman works from home in Germany

A woman works in her living room at home. Photo: picture alliance/dpa | Daniel Naupold

One duty employers do have, however, is to instruct their workers about the best way to set up a healthy work environment at home, for example by giving guidance on how to regulate the temperature. 

“In the end, it is the employee’s responsibility to maintain his or her workplace in a condition in which he or she can perform his or her work without the threat of health impairments,” Brecklinghaus explained.

What can home office workers do in hot weather?

There are plenty of ways to keep flats cooler in the summer months, including purchasing your own fan, keeping curtains or blinds drawn and ventilating the rooms in the evening or early morning when the weather is cooler.

However, if heat is really becoming a problem, it’s a good idea to communicate this to your employer. This is especially important if you have a health condition that makes it more dangerous to work in hot weather. 

In some cases, you might be able to negotiate for the employer to pay for the purchase of a fan or mobile air conditioner as goodwill gesture. If possible, you could also arrange to travel to the office where the temperature should be better regulated.

Another option for early birds or night owls is to arrange more flexible working hours so you can avoid sweltering at your desk in the midday sun, although this of course depends on operational factors. 

READ ASO: Jobs in Germany: Should foreign workers join a union?