Daimler cut CEO Dieter Zetsche’s pay by 5.8%, as all managers’ payments were reduced once the profit targets were scrapped.
Zetsche’s compensation for last year totaled 8.15 million euro, from 8.65 million euro in 2011. The automaker announced that the short-term annual bonus for the company’s eight management-board members was reduced 28% to 4.65 million euro. In October, Daimler postponed its target for long-standing earnings and began a cost-cutting program due to the aging model line-up at Mercedes and the auto-market slowdown in Europe.
“It’s clear that some targets were not reached” at Daimler, said Frank Biller, an analyst at Stuttgart-based LBBW. “It’s easily comprehensible that the variable remuneration declined.”
On February 21st, Zetsche’s contract as Daimler’s CEO was extended until the end of 2016. His total payment includes the base salary of 1.43 million euro, the same as a year earlier, a short-term bonus of 1.43 million euro, a medium-term bonus of 1.43 million euro, depending on the performance of Daimler’s shares, and long-term variable bonus that includes stock options.
Andreas Renschler, currently the head of the truckmaking unit, had his compensation cut by 3.2% to 3.29 million euro and Wolfgang Bernhard, who runs production and purchasing at the Mercedes car division, saw his compensation reduced with 4.6% to 3.05 million euro.