Leadership responsibility can significantly increase a worker’s chances of earning a six-figure salary, according to an analysis by job platform Stepstone. Even managing a team of up to four people is associated with more than twice the likelihood of reaching that pay level compared with working without management responsibilities.
The analysis draws on around 1.3 million salary submissions made on Stepstone between 2022 and 2026. It includes only people with staff responsibility and reports gross annual pay at the median—the point at which half earn more and half earn less. The median for managers across Germany was €64,000.
Pay differed sharply by industry. Bank executives had the highest sector median, at €96,000, followed by insurance managers at €88,500 and managers in IT companies at €85,250. At hotels and restaurants, the median was €50,000. Within banking, the median reached about €143,000 for chief technology officers and €132,500 for heads of legal departments.
The analysis also showed substantial variation by role. Chief physicians had a median salary of €221,500, the highest figure cited. Leaders in areas such as treasury, asset management and innovation management, as well as chief technology and chief product officers, also earned high salaries, though below that level.
Company size was another factor. Managers at businesses with up to 50 employees earned a median of €57,000, compared with €72,750 at companies with more than 5,000 employees. Team size mattered too: the median was €58,750 for those leading teams of up to four and €87,250 for managers responsible for more than 100 people. For sales managers, the median ranged from €81,500 at smaller businesses to more than €115,000 at large corporations.
Location also influenced pay. Hamburg had the highest regional median in the analysis, at €71,750. Hessen also ranked relatively high. The lowest figure was in Mecklenburg-Western Pomerania, where managers earned a median of €55,000; Thuringia, Saxony and Saxony-Anhalt were also among the lowest-paid states.
Stepstone labour market expert Christina Langer said that high productivity and value creation, along with demanding regulatory and technological requirements, help explain stronger pay in banking, insurance and IT. Managers in these sectors may also oversee larger budgets, more complex processes and greater risks.
Salary growth for executives has moderated. Anna Lüttgen, recruitment head at staffing firm Hays, said average increases last year were about 2%, as the economic situation limited companies’ room for higher pay. Langer likewise pointed to cost-cutting and the easing of inflation as factors weighing on pay growth.
Lüttgen advised managers negotiating salaries to focus on the results and impact of their work rather than relying on their former place in a hierarchy. Experience with transformation and the targeted use of AI can also strengthen a candidate’s case, she said. While companies are removing some management layers, she noted, executives who take on additional responsibility during restructuring may benefit.
Sources: Handelsblatt.