If a DAX company separates itself from a board member, the person affected usually receives a severance payment in the millions. However, the amount can vary greatly, because the value of the “Golden Handshake” depends not only on the respective position and the outstanding contract term. The manager’s previous commitment to creating value in the company often also plays a role. And in many cases it is certainly a request for long-term secrecy about internal company information.
Just a few days ago it was announced that two… SAP-Board members have to leave the group even though their contracts were only extended until 2027 last year. The amount of these severance payments is still unknown, but is unlikely to be enough to place at the top of the list of the most spectacular severance payments so far Germany were paid to outgoing managers. Some of them had to leave because of mismanagement, but still received millions. A former employee has been at the helm of the severance payment kings in Germany for 15 years Porsche-Manager.
Wendelin Wiedeking / Porsche
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Wendelin Wiedeking, former Porsche boss
Photo: Michaela Rehle / REUTERS
The attempt by the former Porsche CEO Wendelin Wiedeking (71) to take over the much larger competitor VW failed. For the manager this meant his departure in the summer of 2009, but this was sweetened by the luxury car company with a severance payment of 50 million euros, half of which Wiedeking donated. Originally there was even 140 million euros in severance pay for Wiedeking, but there was no majority in favor of this on the supervisory board.
Frank Appel / Deutsche Post
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Former Deutsche Post boss Frank Appel
Photo: Malte Ossowski / SvenSimon / picture alliance
After Frank Appel (63) retired in May 2023 after 15 years at the helm of Deutsche Post, a sum of around 38.5 million euros appeared behind his name in the company’s compensation report. The reason for this: Appel had his entire pension commitments paid out at once. The dismantling of numerous post offices in Germany occurred during the former McKinsey consultant’s term of office. However, Appel has not yet completely settled down as chairman of the supervisory board of Deutsche Telekom.
Klaus Esser / Mannesmann
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Ex-Mannesmann boss Klaus Esser
Photo: Winfried Rothermel / AP
The 2000 financial year was marked by the spectacular takeover battle between the telecommunications company Vodafone and the Mannesmann industrial group. A key player was the then Mannesmann boss Klaus Esser (76). After the takeover, the manager lost his job. As a severance payment and “recognition bonus” he received 60 million German marks, which corresponds to a good 30 million euros. Years later, in the Mannesmann trial, Esser had to pay a fine of 1.5 million euros.
Peter Löscher / Siemens
Former Siemens boss Peter Löscher
Photo: Tobias Hase/picture alliance/dpa
After Peter Löscher (66) participated in an internal power struggle in 2013 Siemens had lost and also had to issue two profit warnings in a row, the manager left his top position in the German economy after six years – according to the annual report with a severance payment of 17 million euros. Thanks to very accommodating share commitments from his former employer, the total amount could have been around 30 million euros. Joe Kaeser succeeded Löscher.
Herbert Diess / Volkswagen
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Former VW boss Herbert Diess
Photo: Sven Hoppe / picture alliance/dpa
After his resignation as head of the automobile company in the summer of 2022 Volkswagen conceded Herbert Diess (65) a severance payment of 12.8 million euros. However, since his executive salary should continue until October 2025, the sum paid to him is likely to increase to around 30 million euros. This vision of transforming the Wolfsburg car giant into a tech group failed. The ongoing problems of the Cariad software unit, which was unable to meet its targets for years, cost Diess his job, among other things.
Thomas Middelhoff / Bertelsmann
Former Bertelsmann boss Thomas Middelhoff
Photo: Rolf Vennenbernd/ picture-alliance/ dpa
After Thomas Middelhoff (71) extended his contract as CEO of the media group Bertelsmann for five years in 2002, he left the company a few weeks later after differences with company patriarch Reinhard Mohn with an estimated severance payment of 25 million euros. He moved to the Arcandor retail group and was sentenced to three years in prison in 2014 for breach of trust and tax evasion, from which he was released early after one and a half years.
Klaus Zumwinkel / Deutsche Post
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Rich pensioner, ex-Deutsche Post boss Klaus Zumwinkel
Photo: © Ina Fassbender / Reuters/ REUTERS
The former head of Deutsche Post, during whose term of office the company went public in 2000, had his pension entitlements totaling 20 million euros paid out in 2008. A spectacular search of his private home had previously caused a stir – on suspicion of tax evasion via a foundation. In addition to a fine, Klaus Zumwinkel (80) also received a two-year prison sentence, which was suspended.
Hans-Joachim Körber / Metro
After eight years as CEO of the Metro trading group, Hans-Joachim Körber (78) left the ailing company in 2007. The weaknesses in the subsidiaries Kaufhof and Real accelerated his departure, he left with a severance payment of 19 million euros.
Matthias Müller / Volkswagen:
Matthias Müller (71) was at the helm of the car manufacturer for less than three years from 2015 to 2018, then he had to vacate his place for successor Herbert Diess. Müller received 17.8 million euros as a severance payment for his two-year employment contract. He now serves as chairman of the supervisory board of Piëch Automotive.
Karl-Gerhard Eick / Arcandor
At the top of the ladder, ex-Arcandor boss Karl Gerhard Eick
Photo: Martin Meissner/AP
The former CFO of Deutsche Telekom moved to the ailing trading group Arcandor in March 2009. But the planned rescue failed and the insolvent company had to be broken up. For Karl-Gerhard Eick (70), the six-month short assignment was still worth it; his severance payment was 15 million euros, a sum he had previously guaranteed.
Clemens Börsig / Deutsche Bank
Clemens Börsig (76) received a somewhat strange severance payment in 2006. The former CFO of Deutsche Bank was rewarded for his move to the supervisory board with a severance payment of 14.7 million euros. He remained at the helm until 2012. The position became vacant after Rolf-Ernst Breuer resigned due to the Kirch affair.
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Christine Hohmann-Dennhardt, Volkswagen
Former VW board member Christine Hohmann-Dennhardt
Photo: Daimler
Former constitutional judge Christine Hohmann-Dennhardt (74) only worked for Volkswagen for 13 months. She was supposed to deal with the emissions scandal in the company, but left the company at the beginning of 2017 after various internal disputes. In his luggage is a severance payment of 12.5 million euros and a generous immediate pension of 8,000 euros. She had previously received a signing bonus of 6.3 million euros from Volkswagen. The reason: Hohmann-Dennhardt had previously been employed as board member for integrity and legal affairs at Daimler AG and terminated this contract prematurely due to the move to Volkswagen.