Salaries at Mercedes-Benz: How much employees earn from entry-level to boss

Created: 09/26/2022, 04:52

By: Julian Baumann

Mercedes-Benz is one of the most important employers in the Stuttgart region.

That's how much the employees of the world-famous car manufacturer earn.

Stuttgart - Alongside the Bosch technology group, the Mercedes-Benz car group is probably the largest employer in the Stuttgart region and far beyond.

Even after the spin-off of the truck business and the associated downsizing of the traditional company, the group still employs around 172,000 people worldwide.

Mercedes-Benz will continue to adhere to the hierarchical structure that already defined salary levels at the predecessor company Daimler.

It should come as no surprise that the board around Ola Källenius deserves the most.

The Mercedes boss recently received a salary increase.

In most cases, the amount of remuneration depends on the respective hierarchical level.

At Mercedes-Benz, around 100 managers are directly below the Board of Management, they form level 1. Below them are the division managers (E2), the department managers (E3) and finally the team leaders (E4).

Below these levels, the collective wage set by the IG Metall union applies, as reported by BW24.de.

Mercedes-Benz: salaries of the board of directors of the car company - that's how much Ola Källenius and Co earn

The Mercedes-Benz Board of Management steers the fortunes of the globally active car group from Stuttgart.

Mercedes boss Ola Källenius received total remuneration of 6.14 million euros after the good 2021 financial year, the

(dpa) reported in mid-March.

In addition to the CEO, there are seven other people on the board of the car company.

This is how much the acting board members earned in fiscal year 2021:

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)

In addition, former members of the board of directors of Mercedes-Benz and the predecessor groups still receive salaries.

According to the remuneration report, the former CEO Dieter Zetsche received around 3.5 million euros for the 2021 financial year.

Mercedes-Benz: Executive salaries at levels 1 to 4

Around 100 top managers at Mercedes-Benz make up Level 1 directly below the Board of Management. They each earn several hundred thousand euros per year, but the salary at this level is negotiated individually, reports the

.

In addition to their remuneration, managers receive a bonus and a package of so-called phantom shares per year.

This is intended to give top managers at Mercedes-Benz a financial stake in the car manufacturer's share price over a period of four years, so that their decisions are considered over the long term.

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Salaries at Mercedes-Benz depend on hierarchical structures.

But business success also plays a role.

© Marijan Murat/dpa

Then there are the management levels 2 to 4 in the hierarchy at Mercedes-Benz. Level 2 includes the department heads, who often have several hundred employees under them.

According to the Stuttgarter Zeitung, they earn a basic salary of around 200,000 euros, to which bonus payments and amounts for phantom shares are added.

The department heads at level 3 earn between 120,000 and 140,000 euros per year including bonus payments.

Finally, level 4 includes the team leaders at Mercedes-Benz, who are at the lowest management level and earn around 100,000 euros per year.

Mercedes-Benz: Remuneration of employees at the car company

In Germany, Mercedes-Benz employees are paid according to the wage agreement of the IG Metall trade union.

There are the so-called pay groups (EG).

The salary of the respective employee depends on the area, for example in assembly, and the years of service in the company.

Selection of remuneration for collective bargaining employees by activity:

(

)

In Baden-Württemberg, the salaries of Mercedes-Benz employees range from pay group 1 with around 2,400 euros to pay group 17 with around 6,000 euros per month, reports the

.

There are also surcharges for late work and shift work.

Mercedes-Benz: Bonus for employees - company car and phantom shares

While Mercedes-Benz executives are provided with a company car, employees below the E levels still receive a discount of 21.5 percent if they buy a new Mercedes and keep it for at least six months.

This now includes, for example, the electric luxury sedan EQS.

Managers also receive a bonus that depends on the success of the entire company or the respective division.

According to the

, the base salary of top executives can be tripled if financial targets are met.

In recent years, Mercedes-Benz has drawn considerable criticism because the group has paid out high dividends to shareholders despite massive job cuts.

Last year, Mercedes distributed 5.35 billion euros to shareholders, the highest dividend in the company's history.

Through the so-called phantom shares, however, the executives of the group should also benefit from such payments.

The shares are reallocated every year and are valid for four years.

As a result, executives are placed as if they actually held the allocated shares and thereby receive a dividend.

The sum is paid out in the fourth year, so that the executives also benefit from the share price.

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