Siemens CEO Reaps 26 Percent Pay Increase as Earnings Advance
Stock Chart for Siemens AG (SIE)
Siemens AG said it paid Chief Executive Officer Peter Loescher almost 9 million euros ($11.8 million) last year, a 26 percent increase, after he bolstered profitability at Europe’s largest engineering company.
Loescher’s fixed salary in the fiscal year through Sept. 30 remained steady at 1.98 million euros, and he was awarded a cash bonus of 4.08 million euros, according to the annual report published by the Munich-based company today. Loescher, who took over in 2007, also received stock-based compensation and other remuneration as part of the total sum, the report shows.
The CEO’s pay compares with the 3.56 million euros that Chief Financial Officer Joe Kaeser received in total compensation in the period, according to the report. Siemens said it will tie remuneration of board members more closely to the company’s success, and cut the cash component in total pay.
The maker of high-speed trains, power turbines and factory automation equipment reiterated revenue will grow “moderately” in the fiscal year started Oct. 1, and income from continuing operations will rise at least 25 percent to 35 percent. Sales and profit in fiscal 2012 will also gain, the company said.
Siemens on Nov. 11 proposed a record dividend of 2.7 euros for each share, after cost cuts and a faster-than-expected recovery of global growth helped operating profit swell to 7.8 billion euros last year. Growth going forward will be supported by a “clear recovery” in energy markets and rising demand for lighting and health-care products, Siemens said in the report.
The company said it expects a one-time gain from the sale of its 34 percent in nuclear power venture Areva NP to Areva SA, the French nuclear company, in the current fiscal year. Siemens in 2009 exercised an option to sell to Areva, and a dispute over the price is being settled by an arbitration procedure.
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