Concerns Over High Salaries of State Managers in Berlin

Berlin - There is growing concern regarding the exorbitant salaries paid to top executives within state-owned companies in Berlin. Despite significant budget deficits and unprecedented levels of debt, the local government continues to offer remarkably high remuneration packages to these managers.

The annual gross salaries for the executives of various state enterprises reach up to half a million euros, which is double the salary of the city's governing mayor. For example, the CEO of IBB earns EUR498,000, while the heads of the Berlin Airport and the Messe Berlin receive EUR483,000 and EUR480,000, respectively. Other significant salaries include EUR452,000 for the BVG, EUR429,000 for Vivantes, and EUR387,000 for BSR.

The salaries consist of a base salary supplemented by additional payments, including bonuses. However, the structure of these bonuses remains opaque. Three years ago, the State Audit Office criticized the bonus system for lacking clear guidelines and oversight regarding the justification for such payments. A review of these systems was announced but has yet to be conducted.

Moreover, the justifications for the bonuses appear to be questionable. For instance, the CEO of Messe Berlin and their deputy are promised bonuses of about EUR38,000 for developing new exhibition concepts. Similarly, the CEO of BSR is set to receive a bonus of EUR163,000, with 15% allocated for creating a new bio-waste collection strategy. Additionally, the managers of Tegel Project GmbH can earn bonuses for conducting an employee satisfaction analysis by the end of the year.

It raises the question of whether these tasks are not already part of the executives' core responsibilities, making the additional compensation seem unjustified. The argument often presented for such high salaries is that it is necessary to attract qualified managers. However, reality suggests otherwise.

For instance, the position at BVG was filled not solely based on qualifications but based on gender considerations. In 2010, Sigrid Nikutta was recruited from Deutsche Bahn at the behest of the SPD, and in 2020, the Greens appointed Eva Kreienkamp from Mainz's municipal transport company as her successor. In 2024, Henrik Falk, a veteran within BVG, took over the role. This practice of filling leadership positions based on criteria other than professional qualifications raises questions about the need for such high salaries.

The issue of excessive compensation for managers in state-owned enterprises continues to be a contentious topic, with many citizens wondering why the coalition of CDU and SPD has not taken steps to reduce these costs amidst fiscal challenges.