Photo: Daimler
On Thursday, German auto group Daimler started posting its financial results for 2017, reporting record car sales of 3.3 million vehicles, record revenue, record earnings before interest and taxes (EBIT) and record net profit.
It was only natural that after all the achievements of last year Daimler will reward, as always, its employees. Just this year they will receive the highest profit-sharing bonus in the company's history: 5,700 euros ($7,070) for each entitled tariff-scale employee.
According to the German company, 130,000 employees qualify for the bonus and all work in Germany. The numbers mean that Daimler's total expenditure on this considerable pay to be over 74 million euros ($91 million). All the employees will receive the reward with their April pay.
“Our employees contributed substantially to make 2017 the most successful year of Daimler’s company history so far. We want to honor this outstanding performance with a profit-sharing bonus and thank our colleagues for their relentless dedication,” said Wilfried Porth, Human Resources and Director of Labor Relations & Mercedes-Benz Vans.
Daimler employees participate in profit sharing since the system was implemented in 1997. Daimler explains that the profit-sharing bonus formula is linked EBIT with the return on sales. Since the group's 2017 operating profit was nearly 2 billion euros ($2.4 billion) higher than in 2016, that allowed for the record bonus.
For 2018, Daimler does not expect to break the records of 2017. Although it forecasts a slight increase in both unit sales and revenue, it estimates that EBIT will be in the prior-year magnitude.
“The Daimler workforce has once again succeeded in breaking the records set in the previous year,” said Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars. “Our company stands for stable success in volatile times. But: stability is no justification for still standing. That’s why we are pushing forward with the transformation in all areas at Daimler.”
According to the German company, 130,000 employees qualify for the bonus and all work in Germany. The numbers mean that Daimler's total expenditure on this considerable pay to be over 74 million euros ($91 million). All the employees will receive the reward with their April pay.
“Our employees contributed substantially to make 2017 the most successful year of Daimler’s company history so far. We want to honor this outstanding performance with a profit-sharing bonus and thank our colleagues for their relentless dedication,” said Wilfried Porth, Human Resources and Director of Labor Relations & Mercedes-Benz Vans.
Daimler employees participate in profit sharing since the system was implemented in 1997. Daimler explains that the profit-sharing bonus formula is linked EBIT with the return on sales. Since the group's 2017 operating profit was nearly 2 billion euros ($2.4 billion) higher than in 2016, that allowed for the record bonus.
For 2018, Daimler does not expect to break the records of 2017. Although it forecasts a slight increase in both unit sales and revenue, it estimates that EBIT will be in the prior-year magnitude.
“The Daimler workforce has once again succeeded in breaking the records set in the previous year,” said Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars. “Our company stands for stable success in volatile times. But: stability is no justification for still standing. That’s why we are pushing forward with the transformation in all areas at Daimler.”
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