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Salaries at the car manufacturer

Headhunter reveals: that’s what daimler employees really earn – from entry-level to CEO

31.01.2022 updated: 04:45

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• Author julian baumann

stuttgart-based daimler AG and its subsidiary mercedes-benz are among the world’s best-known carmakers. A headhunter now revealed what employees actually earn.

Stuttgart – although daimler AG (BW24* reported) emerged from daimlerchrysler AG in 2007, the history of the Stuttgart-based group actually goes back to 1883 and the then company benz& cie back. The world’s first automobile was built in what is now the state capital of stuttgart*. In the meantime, daimler is known all over the world, which is mainly due to the luxury brands of its subsidiary mercedes-benz*. Last year, the carmaker had to deal with several problems that led to massive job cuts.

The models of Daimler AG stand for German engineering and, although the group is currently weakening, the vehicles are still popular worldwide. Many car fans and technology enthusiasts surely dream of a career with the swabian automaker. A headhunter has now revealed how much the group’s employees actually earn, such as the image reports. It should come as no surprise to anyone that daimler boss ola Kallenius receives a lavish salary*.

Daimler AG: Salary depends on clearly defined hierarchies

daimler AG acts as the umbrella company for the three legally independent subsidiaries mercedes-benz AG, daimler truck AG and daimler mobility AG. The company, headquartered in the Unterturkheim district of Stuttgart, has a total of 298 employees.655 employees (as of december 2019) spread across daimler locations worldwide*. In germany alone, 178.000 employees work for daimler, of which around 145.000 at mercedes. The hierarchy at the carmaker is clearly regulated. The salary of the employees usually also depends on this classification, such as picture reports. The Executive Board, headed by Daimler CEO Ola Kallenius*, is at the top of the list. The other management positions are divided into different levels.

At daimler AG, around 100 executives are directly under the executive board, forming level 1. Below them are the division heads (E2), the department heads (E3) and finally the team leaders (E4). A headhunter revealed to the picture, that a team leader in the IT sector has around 140.000 euros gross per year. There is also a company car, which is replaced by a new model every six months. In the higher echelons, this can sometimes be well over 100.000 euro G-Class or an AMG model. A manager on the extended executive board can expect to earn around one million euros a year, the headhunter went on to say. The fixed salary, however, amounts to 300.000 euro.

Selection of positions and associated annual salaries at daimler AG:

Daimler AG: the collectively agreed wage applies among the e-levels – and discounts on mercedes models

Daimler AG employees in Germany are paid in accordance with the collective wage agreement of the IG Metall trade union. There are the so-called pay groups (EG), such as picture reports. The salary of the respective employees depends on the area, for example in assembly, and the number of years they have worked for the company. An entry-level employee, for example, would receive a gross salary of around 3.700 euros per month. A production planning clerk, on the other hand, already earns a gross monthly salary of 5.800 euros. Together with vacation and Christmas bonuses, a workshop programmer receives an annual salary of 60.000 euros, a production foreman over 50 years old receives around 73.000 euro per year.

While executives at daimler AG are provided with a company car, employees below the e-level still receive a discount of 21.5 percent if they buy a new mercedes and keep it for at least half a year, as the image reports. This now includes, for example, the new e-SUV EQA* and also the upcoming electric S-Class EQS. Due to the massive economic and private consequences of the corona pandemic for the employees, last year around 170.000 daimler employees a corona bonus of 1.000 euros*.

Daimler AG: ola kallenius and the top management level – what do the top managers earn??

In 2019, daimler AG distributed remuneration of 23.1 million euros to the members of the board of management. CEO ola Kallenius received 3.5 million euros. For the carmaker’s top managers, however, compensation makes up only a small part of total pay, reports the image. How much money is actually paid out is governed by a complex system of performance-based, variable remuneration. According to the report, Kallenius could theoretically earn up to twelve million euros a year, and the other board members up to 7.2 million. Due to the corona crisis, however, executives forgo part of their salaries.

In addition, however, there are large sums for retirement benefits, which play an important role at Daimler AG as a whole. Dieter zetsche, the former head of daimler*, has accumulated around 42 million euros by the time he retires. *BW24 is part of the ippen digital network.