DAX companies

Study Reveals Manager-Worker Pay Gap

Emblems of VW Golf VII car are pictured in a production line at the plant of German carmaker Volkswagen in Wolfsburg in this February 25, 2013 file photo. Volkswagen said February 27, 2013 it will pay its German workers a 7,200-euro ($9,400) bonus for 2012, a reduction of 4 percent on the previous year's payout despite Europe's biggest car maker having posted a record profit and sales. Picture taken February 25, 2013. REUTERS/Fabian Bimmer/file (GERMANY - Tags: TRANSPORT)
Emblems of Volkswagen Golf VII car in a production line of the carmaker in Wolfsburg. Volkswagen is one of Germany's largest employers, with a workforce of about 200,000 in Germany alone.
  • Why it matters

    Why it matters

    A new study shows DAX managers earn far more than employees at the companies, raising concerns about growing inequality.

  • Facts


    • The Hans-Böckler foundation study found some managers earned 141 times the average level of pay at their companies.
    • In Germany, executive pay has to be approved by the supervisory board but is not necessarily published.
    • By comparison executives earned 14 times more than employees 30 years ago.
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Some managers earn up to 141 times what their employees take home, according to a research that has led to outrage about executive rewards.

The study, published by the Hans-Böckler foundation, also called for greater transparency on pay.

The foundation, which is aligned with services labor union Ver.di, focused on DAX companies and acknowledged that managers leading thousands of employees and carrying a weight of responsibility should also be rewarded. But the authors also raised the question how great a difference there should be between the pay of executives and employees.

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