Managing director salary in Germany
How much does a managing director earn?
The role of a managing director is associated with a lot of responsibility – for the company, the employees and the budget. These are just a few of the factors that determine the salary among executives.
There are many different titles for executives and decision-makers in companies. But do job titles such as CEO, managing director or CEO all refer to the same thing? Not entirely. A managing director manages a company and represents it externally. In some companies, the title of general manager is used for this position – so there is no difference here. The abbreviation CEO, however, stands for Chief Executive Officer and refers to the CEO or Executive Board member.
What is the average salary of a managing director in Germany?
Managing directors are high up in a company's pay pyramid. However, there are generally large fluctuations between incomes. According to the web portal Gehalt.de, managing directors earn between €75,523 and €157,455 per year. The wide range of salaries is mainly due to regional, industry and company-specific factors. However, the negotiation of variable salary components based on personal performance of the managing director and the success of the company is becoming increasingly common. This also applies to the CEO, whose salary per year is between €108,975 and €241,564. Another crucial factor is whether the CEO works for a listed company.
CBDO, CCO, CEO: What is hiding behind the English job titles
Job title short form
Job title long form
Chief Business Development Officer
Responsible for strategic business development
Chief Content Officer
Responsible for content of all marketing activities
Chief Executive Officer
Chairman of the Board, Executive Member of the Managing Board
Chief Financial Officer
Commercial director, financial executive in a public company
Chief Human Resources Officer
Personnel managing director, HR Director in a joint stock company
In which sectors do managing directors earn the most?
According to the salary report "Managing Directors 2016" prepared by the personnel and management consultancy Kienbaum Consultants International, the pharmaceutical, automotive and chemicals sectors are the three top industries in terms of managing director salaries. Pharmaceutical companies pay their bosses an average of €611,000 per year, while in the automotive sector their annual salary is €574,000 and in the chemical industry €566,000. In public companies, managing directors in banks and savings banks earn the most. This was found in another Kienbaum study, the salary report "Executive and Management Salaries in Public Enterprises". Bank bosses receive an average of €347,000 – and therefore more than three times as much as a general managing director in the spa and leisure industry, whose average income is €107,000 per year. Public companies in the social economy pay even less: The gross annual salary of a managing director in such companies averages €98,000. Regardless of the sector, however, earnings are higher in larger companies, correlating with employee numbers and turnover. The salaries of managing directors in the academic sector are also very varied: Depending on the employer and area of responsibility, salaries are based on the collective W pay scale, according to the salary group B or is related to tasks and qualifications.
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Salary of managing directors in public companies by company size
Where do managing directors in Germany earn the most?
The figure on the payslip also depends significantly on the job location. Management positions in Hesse are therefore the most attractive, paying €10,134 per month. This is followed by Baden-Wuerttemberg at €9,671 and Bavaria at €9,379. In the north of the republic, Hamburg offers the most: In the Hanseatic city, the average monthly income of a managing director is €9,297. The lowest earnings can be found in the east of Germany. In Mecklenburg-Western Pomerania, for example, a general managing director receives a salary of €6,665 a month – the lowest nationwide.
How does salary develop with increasing professional experience?
The role of managing director almost always requires several years of professional experience. An exception is young self-employed managing directors who start their own business, initially employ few or no members of staff and manage a smaller budget. In general, however, the following also applies in management: The salary increases with professional experience.
Management salary depending on professional experience