Berlin Executive Pay Cap Proposal

Berlin Coalition Clashes Over Capping Executive Pay at State-Owned Firms

Berlin's SPD and CDU governing coalition is at odds over a proposal to cap executive pay at state-owned firms. The SPD wants to limit salaries to the governing mayor's current €212,000 plus a third, setting a maximum of around €300,000. The coalition partner, the CDU, opposes this move, arguing it would hinder attracting top talent to Berlin.

The SPD's proposal, which has not been discussed in the Berlin Senate's annual report on public enterprises or government meetings, seeks to benchmark future pay against the governing mayor's salary. Top executives at major Berlin public enterprises currently earn between €400,000 and €500,000, more than double the mayor's salary.

SPD faction leader Raed Saleh has previously advocated for salary caps, describing some pay packages as 'outrageous'. However, the coalition agreement rules out unilateral SPD initiatives in parliament. Michael Dietmann, the CDU's economic policy spokesman, has stated that the SPD's proposal 'will never make it to the House of Representatives in its current form'.

The State Audit Office has criticized the pay scales, finding they exceed those of government officials and lack justification. Despite this, no specific person within the Berlin government coalition in 2025 has been identified as responsible for reviewing, amending, or rejecting the SPD initiative based on current public knowledge.

The dispute over capping executive pay at state-owned firms in Berlin remains unresolved. The SPD's proposal, if implemented, would significantly reduce the salaries of top executives at major public enterprises. However, the CDU's opposition and the coalition agreement's provisions may hinder the SPD's initiative.