You may have noticed that sometopGermanbankers—one might even call them DeutscheBankers—haven’t been doing the best job lately. And not only bankers, as it happens, but C-suiters of all shapes and sizes. Some German politicians have noticed this, as well. And with an election coming up in just over seven months, those politicians are guessing that voters have noticed, too, and might even be a little angry about it.
The SPD, which has veered to the left under its new leader Martin Schulz, presented a draft law on Wednesday to limit the tax deduction at 500,000 euros ($524,900.00) annually for members of a listed corporation's management board.
Board members in large corporations can earn much more in salary and benefits, but payments above that level - which are currently tax-exempt business expenses - would cost the company more in tax because it could not write them off….
In addition, the bill would allow shareholders at the annual general meeting to agree on a maximum ratio between senior management compensation and the average salary in the company.