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The CEO of Mercedes-Benz, Ola Kallenius, saw a substantial increase in his remuneration last year, primarily driven by high bonus payouts, according to a company report released on Friday.
Significant Rise in Compensation:
Kallenius’s total remuneration, including pension costs, amounted to 12.7 million euros ($13.9 million) in the previous year, marking an 80% surge compared to the preceding year.
This considerable increase positions Kallenius as one of the highest-paid CEOs among the 40 companies listed on Germany’s blue-chip index.
Exceeding Industry Peers:
The escalated earnings elevate Kallenius’s compensation above that of other prominent industry figures, surpassing the remuneration of Volkswagen CEO Oliver Blume, who took home 9.71 million euros. The notable disparity underscores Kallenius’s elevated standing within the automotive sector.
Bonus Structure and Performance:
The rise in managerial salaries at Mercedes-Benz is attributed to variable bonuses that expanded with the company’s long-term incentive program.
The program, initiated in 2019, witnessed substantial growth as Mercedes-Benz exceeded predefined returns and cash flow targets, as outlined in the report.
Contract Extension and Future Leadership:
In a testament to his leadership and strategic vision, Mercedes-Benz extended Kallenius’s contract in July, securing his position as CEO until mid-2029.
This long-term commitment underscores confidence in Kallenius’s ability to steer the German automaker through evolving industry dynamics and challenges.
