In the business world, strong performances are typically rewarded with increases in pay, but that theory apparently doesn’t hold true at Germany’s Daimler.
Daimler – parent company of Mercedes-Benz, Maybach and smart – posted records profits in 2011, but company CEO Dieter Zetsche actually saw his compensation decrease last year. Zetsche took home 8.65 million euros in base pay, bonuses and long-term stock options in 2011, down from 8.69 million euros in 2010.
Although the year has come to a close, Zetsche could still be in line for a 2011 bonus based on the company’s future performance. Daimler could pay Zetsche a 2.04 million euro bonus next year based on the company’s stock performance versus other automakers, according to Bloomberg.
Daimler’s net income increased 29 percent to 6.03 billion euros in 2011, but the company’s Mercedes luxury brand did suffer a setback. Mercedes fell to third on the luxury sales charts, slipping behind Volkswagen’s Audi brand. Zetsche, whose current contract runs through 2013, has vowed to pass both Audi and BMW to become the world’s largest luxury automaker.
