Significantly lower compared to last year's bonuses.
With 3.34 million passenger cars and commercial vehicles delivered last year, 2019 saw a minor decrease in global sales for Daimler compared to 2018. And while the revenue was €172.7 billion ($188.6 billion at the current exchange rates), up from €167.4 billion ($182.8 billion) the prior year or an increase of 3 percent, the net profit weakened to €2.7 billion ($2.95 billion) from €7.6 billion ($8.3 billion) in 2018. Despite the challenging last 12 months, the German manufacturer proudly announced it will be handing out bonuses to its employees of up to €597 ($652) and a one-time appreciation bonus of up to €500 ($546).
Daimler explains roughly 130,000 tariff-scale employees are eligible for the bonus and they will receive it with their April pay. For comparison, last year the automaker gave its workers a bonus of €4,965 ($5,640), while the 2018 bonus was €5,700 ($6,225) based on the company’s 2017 financial results.
2019 And 2018 Bonuses:
“We are aware that many of our colleagues had to work with high tension and under difficult conditions this past year,” Michael Brecht, Chairman of the General Works Council at Daimler, commented. “Therefore, we have jointly agreed to pay an additional one-time appreciation bonus. We are grateful for everyone’s exceptional performance and commitment.”
The annual bonus in the company is based on its annual operating profit. In 2019, the operating profit was €4.3 billion ($4.7 billion) compared to €11.1 billion ($12.12 billion) in 2018. This comparison easily explains the significantly smaller dividend for Daimler’s employees this year.
“2019 has been challenging and required particular efforts from our employees,” added Wilfried Porth, Member of the Board of Management of Daimler. “We want to honor their extraordinary commitment of the past year with a one-time appreciation bonus.”
Daimler has been giving profit-sharing bonuses to its employees since 1997.
- Employees receive profit-sharing bonus of up to 597 euros and a one-time appreciation bonus of up to 500 euros
- Wilfried Porth, Member of the Board of Management of Daimler AG responsible for Human Resources and Director of Labor Relations & Mercedes-Benz Vans: “2019 has been challenging and required particular efforts from our employees. We want to honor their extraordinary commitment of the past year with a one-time appreciation bonus.“
- Michael Brecht, Chairman of the General Works Council at Daimler AG: “We are aware that many of our colleagues had to work with high tension and under difficult conditions this past year. Therefore, we have jointly agreed to pay an additional one-time appreciation bonus.”
Stuttgart – The automotive industry is changing: despite challenging conditions, Daimler participates its employees in the financial year 2019 with a profit-share of up to 597 euros and a one-time appreciation bonus of up to 500 euros. This the Board of Management and the General Works Council agreed on. The bonus applies roughly to 130,000 eligible tariff-scale employees in Germany, who will receive it with their April pay.
“2019 has been challenging and required particular efforts from our employees. We want to honor their extraordinary commitment of the past year with a one-time appreciation bonus”, says Wilfried Porth, Member of the Board of Management of Daimler AG responsible for Human Resources and Director of Labor Relations & Mercedes-Benz Vans.
Michael Brecht, Chairman of the General Works Council at Daimler AG: “We are aware that many of our colleagues had to work with high tension and under difficult conditions this past year. Therefore, we have jointly agreed to pay an additional one-time appreciation bonus. We are grateful for everyone’s exceptional performance and commitment.”
A profit-sharing scheme for tariff-scale employees exists at Daimler since 1997. Calculation of the profit-sharing bonus at Daimler is settled in an agreement with the General Works Council. The profit-sharing bonus is calculated by a formula, which links the profit of Mercedes-Benz, Mercedes-Benz Vans and Daimler Trucks before interest and taxes (EBIT) with the return on sales. After the implementation of Project Future, there is still a consistent and joint profit sharing for the employees of Daimler AG, Mercedes-Benz AG, Daimler Truck AG and Daimler Brand & IP Management GmbH & Co. KG.
The operating profit of 4.3 billion euros for 2019 is below the operating profit of 11.1 billion euros for 2018. As a result, this year’s profit participation is lower than the bonus of 4,965 euros paid out last year.