Title: Criticism Swirls Over Deutsche Bahn's Million-Dollar Bonuses Despite Missed Targets
In spite of falling short of objectives in punctuality and customer satisfaction, Deutsche Bahn (DB) is eyeing board member bonuses worth millions for the year 2022. As reported by NDR, WDR, and "Süddeutsche Zeitung," DB intends to heavily weigh targets such as the proportion of women in management positions when calculating these bonuses. In total, nine members of the Management Board could receive bonuses of five million euros on top of their base salary of around four million euros in 2022.
Politicians have chastised this decision, with Green Party leader Ricarda Lang deeming the bonus payments inappropriate and unjust. SPD chairman Lars Klingbeil recommends that the board members forgo the payments altogether, stating that, even if all contractual obligations are met, it is crucial to consider whether such a move sends the right message .
Newspaper Commentary
The German press has expressed a range of opinions regarding DB's decision to pay these bonuses.
- Freie Presse (Chemnitz): The bonuses are perceived as a "slap in the face" for rail customers and those criticizing allegedly greedy managers. Deutsche Bahn is in crisis and requires capable leadership, which comes at a cost. Criticism should focus on the Supervisory Board, which also includes trade union representatives and German government representatives, as it has supposedly prioritized personal objectives over the actual task at hand .
- "Märkische Oderzeitung" (Frankfurt an der Oder): DB is currently struggling with a punctuality rate of 52% for long-distance services, increasing ticket prices, and roadworks. The planned payments of almost five million euros in bonuses to the top managers is a testament to the flawed bonus model. It rewards overachieved targets, such as the proportion of women in management positions and employee satisfaction, while ignoring missed objectives, such as customer satisfaction and punctuality. The system gives management an incentive to prioritize less crucial targets .
- "Mitteldeutsche Zeitung" (Halle): It was already known that Richard Lutz, rail boss at DB, would receive an additional 1.3 million euros in 2022. Despite delayed trains and a drop in customer satisfaction, these financial rewards remain unaffected. Lutz is set to receive the majority of his bonus retroactively for the achievement or surpassing of key figures in CO2 savings, employee satisfaction, and the proportion of female managers. Train drivers' union boss Claus Weselsky has long criticized the bonus scandal and will now gain new ammunition in wage disputes .
- "Spiegel": While advocating for the dismissal of DB's management in an extreme manner is not tenable, the German Republic should seriously consider whether it wants to entrust its expensive railways to self-righteous managers. The bonus payments could be a signal that the company has lost touch with the needs and desires of its customers .
- Straubinger Tagblatt/Landshuter Zeitung: Critics argue that DB's top managers receive the bonus despite job performances failing to meet expectations; this "land of milk and honey" scenario continues even with increased prices for customers and delayed train services .
- Süddeutsche Zeitung: Berthold Huber, head of the network at DB, has openly declared to the Federal Government that the railroads are "too full, too old, too broken" and that well-qualified managers are urgently needed, but they do not come cheap. There is the need for more managers of Huber's caliber, especially in a state-owned company. If the head of the railroads continues to earn less than the lowest-paid board member at BMW, Mercedes, and Volkswagen, we should not be surprised at the consequences .
Additional Insights
Public Sector Disputes
There have been ongoing disputes within the public sector, including at Berlin’s local transit operator BVG, where employees demand substantial wage increases and better working conditions. The Verdi union faces criticism for not fully supporting these demands, and there are calls for rank-and-file action to address employee grievances .
Corporate Governance and Compensation
Compensation systems for board members at companies like LANXESS place emphasis on long-term incentives and performance targets. However, there is no specific reaction in these sources to the controversy surrounding the bonuses at Deutsche Bahn .
Sources
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