German transport minister moves to tie Deutsche Bahn executive bonuses to punctuality targets

Minister ties bonuses to punctuality targets

Germany's new transport minister Steffen Bilger announced he wants to link bonus payments for Deutsche Bahn executives directly to whether the state-owned rail operator meets government-set targets, in an interview with Bild am Sonntag published on 9 August. Bilger, a CDU politician appointed late last month, said the federal government is preparing a new financing agreement with the company that would tie billions of euros in infrastructure funding to specific performance benchmarks. The move follows mounting public criticism over chronic delays and executive compensation at the national rail operator. Bilger said he wants to achieve a noticeable improvement in punctuality.

It will have a concrete impact on bonus payments of Deutsche Bahn managers if targets set by the government are not met.

Punctuality figures remain low

Long-distance trains reached about 60% punctuality in the first half of 2026, according to Bilger, with the rate dropping further during the hot summer months. In July, punctuality fell to 52.6%. The current agreement with Deutsche Bahn sets a target of 70% punctuality for long-distance services by 2029. Bilger called the current figures "completely inadequate" but acknowledged that full punctuality is unrealistic, noting it does not exist elsewhere in Europe either.

There won't be 100% for the foreseeable future. I don't think it exists in other countries in Europe either.

Hamburg-Berlin route struggles despite renovation

The recently renovated Hamburg-Berlin line, one of Germany's most important rail corridors, continues to suffer chronic delays despite a major overhaul. Deutsche Bahn confirmed that only 25.8% of long-distance trains on the freshly refurbished route had no delays, as first reported by Bild. The line was fully closed for ten months of renovation work, with 2.7 billion euros invested. Ongoing residual construction work continues to slow trains on the route, which had been expected to improve reliability after the extensive refurbishment. According to Deutsche Bahn, the broader punctuality problems across the network stem from infrastructure disruptions, high construction volume, and heat waves that have placed additional stress on the system.

Profit amid scrutiny

Despite the punctuality crisis, Deutsche Bahn reported a profit of 147 million euros in the first half of 2026, its first surplus in seven years, according to information obtained by Der Spiegel. The return to profitability was first reported by Bild. Bahn CEO Evelyn Palla recently used unusually sharp language to criticise conditions within the company, saying there was an "organized irresponsibility" in management. The profit stands in contrast to the persistent operational problems across the network, and its disclosure has added to public criticism of executive compensation at the state-owned company.

Government funding tied to performance

The federal government's new financing agreement with Deutsche Bahn will specify how many billions flow into rail infrastructure and will link those funds to performance requirements. Bilger emphasised that many Deutsche Bahn employees do solid work, but said unsatisfactory results must have consequences for management pay. The minister, who took office in late July, has said he is determined to improve punctuality, though he cautioned that improvements will take time given the scale of the infrastructure challenges facing the network.

I think rail customers and taxpayers have a right to see that success is really measured.