Germany to Require CEO Salary Disclosure

The chief executives of listed companies in Germany will be obliged to disclose their individual salaries or face a fine under a new draft law approved by the German cabinet on Wednesday. Of the 30 companies on Germany's blue-chip DAX stock index, 22 CEOs revealed how much they earned in 2004. A year earlier, the number had been only 11. However, a number of heavyweights of German industry are still refusing to publish the salaries of their managers, particularly in the auto industry. Under the new draft law, companies will have to publish the individual salaries of their board members when they publish their annual report. Companies will be exempt of making that information available to the public only if shareholders explicitly vote to do at the annual meeting. "When you're forced to disclose these things, it acts as a sort of self-control," Justice Minister Brigitte Zypries said.