A resurgence in the prominence of performance-based bonuses is being observed among Germany’s leading companies listed on the DAX index. A survey conducted by the Handelsblatt, involving participation from 25 of the 40 DAX-listed corporations, reveals a shifting landscape in compensation strategies.
Over the past five years, a significant number of these companies have revised their variable remuneration policies. Specifically, Bayer, Deutsche Bank, Merck, SAP, Siemens Healthineers, Siemens Energy, Symrise, Volkswagen (VW) and Vonovia are increasingly emphasizing the use of bonuses as a key component of employee compensation. Brenntag, Beiersdorf, Commerzbank, DHL, Eon, Heidelberg Materials and Rheinmetall maintain consistent bonus structures. The remaining companies did not provide a clear statement in this area.
The magnitude of these bonuses varies considerably across the DAX-listed businesses. Commerzbank has reported paying a monthly salary as a bonus for its first non-collective bargaining level. DHL offers one to two months’ salary in addition, depending on the salary group. Infineon generally provides an average of eight percent of the annual gross salary in bonuses. At SAP, Germany’s most valuable company, bonuses range from 15 to 25 percent of the annual salary, reaching up to 40 percent for sales-related positions.
Furthermore, a return to more individualized performance evaluations for bonus payments is underway. Seventeen companies responded to questions regarding a more individualized focus, with seven now strongly linking bonuses to individual performance. Ten companies have not altered this aspect of their compensation strategy. Companies including Commerzbank, Deutsche Bank, SAP, Siemens Energy, Symrise, Volkswagen and Vonovia are reinforcing this individualized assessment approach.