SAP and Deutsche Bank CEOs exceed €10 million as DAX board pay rises 4% in 2025

DAX executive pay rises again

The Deutsche Schutzvereinigung für Wertpapierbesitz (DSW) together with the Technical University of Munich presented their annual compensation study on Thursday, covering the 40 companies in Germany's DAX index. Board members received an average of €3.9 million in 2025, a 4% increase over the previous year. This represents 42 times the pay of an average employee, up from 41 times the year before. The bulk of compensation consists of performance-linked bonuses paid with a time lag. Looking only at chief executives, the average rose to approximately €6.14 million, a 6.8% increase. DAX company profits stagnated in 2025, even as stock prices held up. All DAX compensation reports were approved by shareholders with over 90% average support.

Two CEOs cross the €10 million threshold

DSW managing director Marc Tüngler described €10 million as a "magic sound barrier" that remains "socially and within companies still acceptable." Two DAX chiefs exceeded it: SAP CEO Christian Klein with approximately €10.9 million, nearly 86% of which came from variable components, and Deutsche Bank CEO Christian Sewing with €10.5 million, about 64% in short- and long-term bonuses tied to business performance.

Adidas CEO Bjørn Gulden ranked third with approximately €9.8 million, despite the company's stock losing nearly 30% of its value over the year. SAP's compensation report also lists a "granted and owed compensation" figure exceeding €16.2 million, which includes a retroactively paid tranche from a 2022 long-term incentive program. Different calculation methods for long-term components can produce significantly different totals.

Pay gaps and shareholder pushback

The widest pay gap was at Adidas, where the board earned 106 times the average employee. Volkswagen (75 times) and Fresenius (70 times) also showed large disparities. While Adidas shareholders approved the past year's compensation report, 68% voted against the newly designed compensation system, requiring the company to revise it.

Tüngler warned that executive pay should not provide further fuel for populist movements, noting that polarization and radical currents already exist in society. He also pointed to international competition, saying Germany is "not on an island" and must compete on compensation. The DSW does not call for salary caps.

German pay modest in international comparison

Euro Stoxx 50 CEOs (excluding German companies) averaged €9.5 million for fiscal year 2025. The Euro Stoxx 50 is a stock index comprising 50 large listed companies from the euro area. Among the 30 companies in the Dow Jones Industrial Average, CEO pay averaged €30.5 million. Goldman Sachs CEO David M. Solomon topped the DJIA ranking with €105.3 million, of which €93.3 million was long-term variable. He was followed by Microsoft's Satya Nadella at €85.5 million and Apple's Tim Cook at €65.8 million. Twenty-eight of the 30 DJIA CEOs earned more than the best-paid DAX chief.

The DSW views positively the growing importance of long-term variable components in DAX compensation.

A high compensation can be appropriate if it is an expression of exceptional value creation.

Board compensation should reward sustainable corporate success and not short-term quarterly results.