DaimlerChrysler thinks it doesn’t make sense, BMW says it doesn’t add value and Porsche sees it as an assault on basic human rights.
The issue is whether shareholders and employees have a right to know how much money the CEOs of major German companies make.
Earlier this month, Volks-wagen’s Bernd Pischetsrieder was the first auto CEO in Germany to divulge his compensation. In 2004 it was E2,631,479, to be exact.
Now that didn’t hurt much, did it?
Pischetsrieder is to be ap-plauded for this new openness at VW. Other German carmakers are still sticking to the outdated practice of merely revealing combined management-board compensation.
If corporations want access to investors’ money, it doesn’t make sense to argue that shareholders are not entitled to know what they pay their top managers. There is no room for selective or partial disclosure here and the German government is proposing a law that would compel most publicly traded companies to provide detailed management board compensation.
That would also bring Germany in line with most other European countries.
VW has joined the rest of the corporate world on this issue. When will D/C, BMW and Porsche?