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Mercedes-Benz CEO Ola Källenius saw a significant increase in compensation last year, reaching 12.74 million euros including pension costs. This marked an impressive 80 percent rise from the previous year and made him one of the highest-earning CEOs among DAX companies. In comparison, Volkswagen’s CEO Oliver Blume earned 9.71 million euros for his roles at VW and Porsche.
Several factors contributed to Källenius’ substantial increase in compensation. One of the key factors was the introduction of a long-term incentive program at Mercedes-Benz, which paid out variable bonuses based on achieving return and cash flow targets. Additionally, half of the annual bonus at Mercedes-Benz is now deferred until the following year, providing a sustained source of income for top managers. Another factor was the inclusion of sustainability goals as a new criterion for measuring top managers’ performance, which aligned with Mercedes-Benz’ commitment to achieving sustainability targets while rewarding top performers.
Källenius announced the inclusion of sustainability goals shortly after taking office in 2019, reflecting his commitment to driving change within the company and aligning it with global efforts to combat climate change. The shift in compensation structure at Mercedes-Benz highlights the importance of rewarding performance while also promoting sustainable practices and goals. With these changes, Källenius significantly increased his earnings and positioned himself as a top earner among DAX companies while demonstrating leadership in sustainability initiatives.
