Higher Compensation for DAX board members: Remuneration Rises Again
The CEOs of DAX companies earned around 3.0% more in 2024 than in the previous year. This results from the annual study by Professor Dr. Maximilian Blaschke, TUM Chair of Management Accounting, and Professor Dr. Jürgen Ernstberger, TUM Full Professorship Financial Accounting, in cooperation with DSW.
41x more
The average total compensation of a member of the executive board of DAX companies has risen slightly again and is now 41 times the average personnel expenses per employee (in 2023, it was 40 times more).
However, CEOs of DAX companies earned significantly more than their fellow board members, with an average of €5.747 million (average total remuneration per board member excluding chairpersons: €3.234 million).
Magical barrier of €10 million broken
DSW defined €10 million as the compensation limit that is considered reasonable. In 2024, this barrier was broken twice. DSW sees this limit as an important indicator of social peace and warns against its gradual erosion through rising maximum remuneration.
24.0% more for male board members
Male board members earn on average 24.0% more than their female colleagues. This difference can be attributed, among other things, to a discrepancy between men and women in the appointment of the position of CEO.
International Comparison
Furthermore, non-German board members earn more than their German colleagues. In Switzerland (SMI), CEOs earn €8.222 million, in France (CAC 40) €6.390 million, in the Euro Stoxx 50 (excluding Germany) €7.916 million, and in the USA (DJIA) as much as €28.530 million. The compensation of German CEOs appears to be rather “low” in international comparison. On the other hand, the maximum possible compensation in Germany has risen significantly in recent years and further increases have already been announced.
Sustainability plays a central role
The ESG criteria (environmental, social, and governance) continue to play a central role. In the 2024 fiscal year, all 40 DAX companies used at least one of the three ESG criteria to incentivize their executive boards. This confirmed the level of the previous year, in which all 40 DAX companies had anchored ESG targets in their compensation systems for the first time. 70% of DAX companies include all three ESG criteria in their compensation.
Next steps
Greater transparency in the presentation of compensation, for instance by implementing uniform reporting across Europe, could be an important first step in this direction. Furthermore, compensation must be reasonable and reflect the performance of the Executive Board. It is important to maintain a balance between global competitiveness, long-term value creation and social acceptance.
Here the link to the full press conference.
