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Daimler’s Zetsche Gets New Contract – And Pay Cut

Daimler’s Zetsche Gets New Contract – And Pay Cut

by on Feb.27, 2013

Daimler CEO Dieter Zetsche gets a pay haircut. Photo by Len Katz.

The good news for Daimler AG Chairman Dieter Zetsche is that he’s got another three-year contract. But he’ll have to balance it against the nearly 6% pay cut he’s been ordered to take by the automaker’s supervisory board after the company missed its profit targets and palace intrigue at Daimler’s Stuttgart headquarters begins to intensify.

If misery loves company, Zetsche isn’t alone. As TheDetroitBureau.com reported earlier this week, Volkswagen AG CEO Martin Winterkorn took a nearly $4 million haircut, though his pay still came to nearly $20 million.

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And then there’s General Motors Chairman and CEO Dan Akerson. Early reports indicated he was gunning for a 20% pay hike, which would bring his all-in compensation to $11 million. But with Washington bureaucrats criticizing recent increases in pay for executives at companies that survived the recession through federal bailouts, Akerson apparently decided he’s be comfy with the $9 million he got last year.

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Daimler Boss Zetsche Gets Vote of Confidence

But the CEO and Mercedes brand boss faces tough challenges.

by on Feb.21, 2013

Daimler AG CEO Dieter Zetsche during the preview of the maker's latest E-Class line.

Daimler AG Supervisory Board, facing a troubled European economy and fierce competition from rivals in the luxury segment, has given a three-year extension to Dieter Zetsche, the maker’s chairman and the head of its flagship Mercedes-Benz brand.

There had been some question about whether the contract would be renewed for Zetsche, who turns 60 in May, in light of problems that include slumping sales in China, lagging margins and the ongoing crisis in Europe. But it became clear that Daimler’s board wasn’t willing to risk a leadership change at the moment.

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“The long-term orientation of the Group’s leadership is an essential factor for Daimler’s sustained success,” noted Manfred Bischoff, chairman of Daimler’s supervisory board. “Dieter Zetsche and the Board of Management have a clear plan how to further enhance Daimler’s overall performance together with their team. Dieter Zetsche is distinguished of course by his great experience, but also by his ability to combine a feeling for cars with sound engineering knowledge and an entrepreneurial approach,” Bischoff added.

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