Performance and remuneration

Daimler rewards good work by means of performance-oriented and success-oriented compensation. The base salary is always set so that, in market comparisons, it represents an appropriate return for work. For above-average performance – be it individual or as part of a team – the remuneration may also be increased through other variable components. The same applies when the company as a whole performs well. The rate of the variable compensation grows in line with an employee’s increased level of responsibility.

Binding Group-wide framework agreements are in force for employee assignments abroad and for retirement benefits. A uniform worldwide model is used for the remuneration of managers. The allocation of variable remuneration and of performance phantom shares can be denied to an employee, for example, due to violations of the Integrity Code. All of the Group’s worldwide employees who are covered by collective bargaining agreements also receive full compensation for their mandatory and completed overtime. The level of cash compensation varies according to country or region. In this way, Daimler can safeguard its competitiveness and attractiveness in every market while taking account of the business options open to each respective company and country.

2006 figures, DaimlerChrysler

In 2006, expenditures for wages and salaries at DaimlerChrysler totaled
EUR 8.6 billion. Of this amount, EUR 10.6 billion was spent in Europe,
EUR 6.8 billion in the NAFTA region, and EUR 1.2 billion in the remaining countries.