Executive Pay

Time for Capitalists to Revolt

John Cryan, bisheriger Co-Vorstandsvorsitzender und zukünftiger Vorstandsvorsitzender der Deutschen Bank, spricht am 19.05.2016 auf der Hauptversammlung der Bank in der Festhalle in Frankfurt am Main (Hessen) zu den Aktionären. Foto: Arne Dedert/dpa +++(c) dpa - Bildfunk+++
Deutsche Bank's AGM. Will shareholders rise up?
  • Why it matters

    Why it matters

    Public pressure might force companies to reduce executive pay to more appropriate levels.

  • Facts

    Facts

    • Between 2005 and 2015, remuneration of management board members of Germany’s top firms jumped by an average of 55 percent. Pay for ordinary workers rose 27 percent.
    • Pensions for top executives are an estimated 250 times larger than other white-collar employees.
    • British hedge fund TCI wants Volkswagen to scrap its executive bonus system. TCI says VW board members earned a total of €63 million in 2015, when VW lost €1.6 billion.
  • Audio

    Audio

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Public uproar over excessive pay for executives is usually a knee-jerk reaction to business scandals.

For example, the Americans were up in arms when at the beginning of the millennium it was revealed how executives at Enron, WorldCom and Tyco not only cooked their books, but profited handsomely in the process.

The same thing happened after the financial crisis when bankers were publicly pilloried because of their high wages. And these days, scandals such as “Dieselgate” at Volkswagen have refreshed the heated debate over the pay and performance of top managers.

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