After Profit Drop: Mercedes Boss Earns Significantly Less - Mercedes-Benz CEO's Pay Plummets 30% Amid Profit Collapse in 2025
Mercedes-Benz CEO Ola Källenius saw his pay drop sharply in 2025. His total compensation fell to around €8.8 million, down from €12.5 million the year before. The decline follows a near 50% collapse in the company's profits during the same period.
Källenius' variable pay took the biggest hit. In 2025, it dropped to €6.268 million, compared to €9.357 million in 2024. This component included a €1.6 million annual bonus and a long-term incentive of roughly €4.7 million. The calculation was based on financial targets like revenue, profit, and sales, as well as non-financial factors such as customer satisfaction, employee retention, sustainability, and the share of electric vehicles sold.
The reduction came as Mercedes-Benz reported a steep decline in profits for 2025. While Källenius remained one of the highest-paid CEOs in Germany's DAX index, his earnings were overshadowed by SAP's Christian Klein. Klein topped the list with €16.2 million in total compensation for the year.
Källenius' pay cut reflects Mercedes-Benz's financial struggles in 2025. The drop in variable compensation ties directly to weaker company performance. Despite the decrease, he still ranks among the highest-earning executives in the DAX.
