WOLFSBURG, Germany — Volkswagen AG chief executive officer Martin Winterkorn’s compensation surged 41 per cent last year, beating the pay given to Daimler AG CEO Dieter Zetsche, as Europe’s biggest carmaker posted record earnings.
Winterkorn earned 9.33 million euros ($12.9 million U.S.) in fixed salary, bonuses and profit incentives compared with 6.6 million euros a year earlier, Wolfsburg, Germany-based VW said Thursday in its annual report. Compensation growth stemmed partly from a new long-term incentive plan introduced in 2010.
The increase makes Winterkorn one of the best-paid executives among companies on Germany’s benchmark DAX Index. Zetsche, who runs the world’s second-biggest maker of luxury cars, earned 8.69 million euros.
Deutsche Bank AG CEO Josef Ackermann was paid 9.55 million euros in 2009. Siemens AG, Europe’s biggest engineering company, paid CEO Peter Loescher almost nine million euros for the year through Sept. 30. Deutsche Post AG, the region’s largest postal service, said Thursday that CEO Frank Appel’s compensation in 2010 totalled 2.96 million euros.
Volkswagen’s earnings before interest and taxes last year almost quadrupled to a record 7.14 billion euros. The manufacturer is proposing a 2010 dividend of 2.20 euros per common share and 2.26 euros per preferred share. VW’s supervisory board extended Winterkorn’s contract in January by five years until 2016.
Pay for Volkswagen’s eight-member management board almost doubled to 36.7 million euros from 18.7 million euros.