Volkswagen AG CEO Martin Winterkorn was paid more in 2010 than Daimler AG CEO Dieter Zetsche. Winterkorn’s compensation had increased by 41% as record earnings were posted by Volkswagen, Europe's biggest carmaker. In VW’s annual report, it was shown that Winterkorn earned 9.33 million euros ($12.9 million) in fixed salary, bonuses and profit incentives compared with 6.6 million euros in 2009.
The increase in compensation is due partly to a new long-term incentive plan presented in 2010. Winterkorn is now one of the best-paid executives among companies on Germany's benchmark DAX Index. On the other hand, Zetsche, the CEO of the world's second-biggest maker of luxury cars, earned 8.69 million euros.
In 2009, Deutsche Bank AG CEO Josef Ackermann was paid 9.55 million euros, says Automotive News. Meanwhile, Peter Loescher (CEO of Siemens AG, Europe's biggest engineering company) earned nearly 9 million euros for the year through Sept. 30.
In addition, Deutsche Post AG, the region's largest postal service, revealed that CEO Frank Appel had a total compensation of 2.96 million euros in 2010. It’s no surprise that Winterkorn earned a lot in 2010 as Volkswagen's earnings before interest and taxes nearly quadrupled to a record 7.14 billion euros.
VW has proposed a 2010 dividend of 2.20 euros per common share and 2.26 euros per preferred share. Last January, Winterkorn's contract was extended by VW's supervisory board by five years until 2016.
Of course, Volkswagen's eight-member management board, CFO Hans Dieter Poetsch and sales chief Christian Klingler, were also paid more. Their compensation nearly doubled to 36.7 million euros from 18.7 million euros. Even Michael Macht, who only joined the board last October, had received 1.03 million euros.