Siemens CEO Sees Significant Compensation Increase Amid Company Growth
ZURICH – Siemens AG has announced a notable increase in the compensation package for its Chief Executive Officer, Roland Busch, reflecting the company’s robust financial performance for the 2024 financial year. According to the latest annual report, Busch’s total remuneration has risen by 26% to €8.61 million (approximately $9.04 million), up from €6.82 million in the previous year.
This increase in compensation comes as Siemens reported a 5% rise in net income, reaching an impressive €8.99 billion, marking the highest level in the company’s history. The financial year concluded at the end of September 2024, showcasing a successful year for the engineering giant.
When factoring in pension fund service costs of €752,000, Busch’s total compensation package escalates to €9.36 million, a substantial increase from €7.61 million in 2023. This rise in executive pay stands in contrast to the more modest 3% increase in compensation for Siemens employees in Germany, which brought the average salary to €110,000.
Ralf Thomas, Siemens’ Chief Financial Officer, also experienced a significant pay raise, with his compensation climbing to €6.74 million from €5.27 million the previous year. This positions him as the second-highest paid member of Siemens’ five-person management board.
The increase in executive compensation aligns with a strong performance in the stock market, as Siemens shares have appreciated by 23.2% over the past year, mirroring the upward trend of Germany’s DAX index.
Siemens’ robust financial results and the corresponding executive compensation adjustments have sparked discussions regarding the balance between rewarding leadership and providing fair compensation to the wider workforce. As the company continues to navigate the complexities of the global market, the focus remains on sustaining growth and enhancing shareholder value.
Industry analysts will be keenly observing Siemens’ strategies moving forward, particularly in light of the contrasting compensation trends between executives and employees. The company’s ability to maintain its growth trajectory while addressing employee concerns will be crucial in shaping its future reputation and operational success.
