Germany may seekcap on CEO pay

21st July 2004, Comments 0 comments

21 July 2004, BERLIN - The German government is not ruling out legislation to impose limits on salaries and benefits paid to top corporate executives, a justice ministry spokeswoman said Wednesday.

21 July 2004

BERLIN - The German government is not ruling out legislation to impose limits on salaries and benefits paid to top corporate executives, a justice ministry spokeswoman said Wednesday.

German corporate salaries are presently set under a self-governing corporate code, said the spokeswoman.

Although German executive salaries are lower than in countries such as the United States there has been growing public anger over benefits enjoyed by CEOs despite three years of German economic stagnation with unemployment over 10 percent.

"If progress is not as would be wished over the next year lawmakers may be forced to take action," said the spokeswoman.

But she underlined there was so far no consideration on what regulations would be included in any such law.

A former head of Germany's Daimler-Benz - now DaimlerChrysler - Edzard Reuter, said in an interview that the government would have to intervene if private business failed to come up with a reasonable solution to this issue.

High salaries "cannot be ethically justified," said Reuter in a Deutschlandfunk radio interview.

DPA

Subject: German news

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