Money Matters

Pay Boost for New Siemens Chief

Joe Kaeser Siemens with name dpa
Drinks are on Joe Kaeser.
  • Why it matters

    Why it matters

    Siemens chief executive Joe Kaeser needs to increase profitability of Germany’s engineering giant or the firm risks losing out to rivals General Electric and ABB.

  • Facts

    Facts

    • Joe Kaeser became Siemens chief executive on Aug. 1, 2013 after having been the firm’s chief financial officer since 2006.
    • Mr. Kaeser’s salary increased to €6.2 million ($7.6 million) in fiscal year 2014 from €4.3 million ($5.3 million) the year before, when he mostly served as finance chief.
    • To improve Siemens’ results, the chief executive has sold and bought operations, including the planned $6.4 billion takeover of U.S. energy equipment maker Dresser-Rand.
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    Audio

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Joe Kaeser’s job of turning around Siemens is not done yet, but he has already been able to reap the benefits of becoming the company’s chief executive.

His pay has increased to €6.2 million ($7.6 million) for Siemens fiscal year 2014, which ended in September, according to Siemens annual report, which was published on Wednesday. The number includes bonuses.

Mr. Kaeser, who is tasked to increase profitability at the engineering firm to keep up with rivals including U.S.-listed General Electric, earned €4.3 million in the fiscal year of 2013, when he served ten months as the company’s finance chief and two as the chief executive.

He became chief executive in August 2013, taking over from Peter Löscher who left abruptly after Siemens delivered a lackluster set of results.

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