DAX Firms Poised for Record Profits in 2026 Amid Rising Executive Compensation

Analysts project a historic high in net profits for DAX-listed companies in 2026, with expected net earnings reaching 127.7 billion euros, marking a 14 percent increase for the year. This projection, reported by Handelsblatt Research Institute based on Bloomberg data, would set a new record in German economic history.

At the same time, executive compensation within these firms reflects significant growth. In 2025, DAX executives earned an average of 3.9 million euros, a 4% rise from the previous year, according to a study by the Deutsche Schutzvereinigung für Wertpapierbesitz (DSW) and the Technical University of Munich. This figure includes performance-related bonuses paid with delays. The compensation for DAX CEOs averaged 6.14 million euros, a 6.8% uptick despite many companies experiencing stagnant profits, although their stock prices remained stable.

Notably, SAP CEO Christian Klein earned the highest amount at 10.9 million euros, with 86% stemming from variable components. Deutsche Bank's Christian Sewing followed closely with 10.5 million euros, 64% performance-dependent. The gap between executive pay and employee salaries remains wide, with executives earning on average 42 times more, and Adidas showing the largest pay disparity at 106 times.

DSW managing director Marc Tüngler emphasized that while high pay can be justified by exceptional value creation, sustainable success rather than short-term gains should be the benchmark for compensation. Comparatively, U.S. CEO remuneration far exceeds German levels, with the average Dow Jones CEO earning 30.5 million euros and Goldman Sachs CEO David M. Solomon topping at 105.3 million euros.

As DAX companies anticipate record profits, scrutiny of how much of that wealth is shared between management and employees is likely to grow.