Siemens Energy is set to grant record-high compensation to its top executives, led by CEO Christian Bruch, as the company exits state-backed guarantees, with Bruch’s potential total around €40 million in the coming reporting year.

The company removed a diversity-related performance target tied to the share of women in top leadership from ESG metrics amid U.S. legal pressures, a move criticized by sustainability advocates but framed as risk management.

During a turbulent period in wind-turbine projects, government guarantees supported Siemens Energy; 2023/24 guarantees reached up to €7.5 billion, now being replaced by bank guarantees, contributing to stock performance gains as the wind crisis subsides.

The payout framework features a substantial retention component and a heavy tilt toward stock-based and variable pay, designed to keep executives from departing for higher offers.

For the year ending September 2025, Bruch’s package includes a €3 million early-exit bonus for relinquishing government guarantees, a €2.1 million fixed salary, about €1.5 million in existing stock grants, totaling roughly €6.6 million; other board members are slated for similar early-exit bonuses of €2 million each.

With the loss of the state guarantee, the company raised the allowable maximum pay for the year to 400% of the prior cap, creating a theoretical ceiling near €40 million, though it remains contingent on extraordinary performance and stock movements.

If Bruch were to hit the theoretical maximum, his pay would be among the highest ever for a German DAX chief, though such a peak has not been achieved; last year’s top earner was SAP’s Christian Klein at about €19 million.

Shareholders previously approved this type of remuneration structure, and the government guarantee wind-down is accelerating its adoption; management argues the bonuses reflect leadership through a difficult transition.

Governance notes include Joe Kaeser, former Siemens CEO, as supervisory board chair who plans to seek higher compensation for the role; an increase requires board and shareholder approval at the February 26 meeting in Berlin.