Rheinmetall CEO Armin Papperger is experiencing the most lucrative years of his group since it was founded. picture alliance/SZ Photo/Mike Schmidt
Rheinmetall has presented its annual report for 2023.
Last year was a record year for the defense company: the operating result rose to 918 million euros, a new record. There was also an order backlog of 38.3 billion euros.
It is noteworthy that CEO Armin Papperger still earned less compensation than in 2022.
It’s war in Europe, and business is booming for one of the continent’s largest arms companies. More than ever before: Rheinmetall had a record year in 2023.
The German weapons manufacturer’s consolidated sales rose by twelve percent to around 7.2 billion euros compared to the previous year. The operating result reached a new high of 918 million euros. The current order value is 38.3 billion euros, also a record value, according to a press release from the group.
“This achievement, which is based on innovation, technological competence and, above all, on the
“We are proud because of the commitment of our employees,” CEO Armin Papperger is quoted as saying. “The course has been set for further growth and increasing profitability.” And: “A new decade in security policy has begun.”
Millions in salary for Papperger – but not a record
In view of these figures and euphoria, it is remarkable to look at the salary of Papperger, the busy and publicity-seeking CEO of Rheinmetall. Because 2023 was not a record year for Papperger.
Rheinmetall granted the CEO a total of 3.561 million euros. Papperger’s base salary amounted to 1.316 million euros, the variable compensation amounted to 1.599 million euros and his so-called service cost amounted to 647,000 euros. The latter is in principle the value for retirement provision.
In the 2022 financial year, Papperger still earned 3.587 million euros. The remuneration for length of service was higher at 1.060 million euros, and the total variable remuneration was lower at 1.206 million euros than in 2023.
Rheinmetall
Given Rheinmetall’s strong order situation and the ongoing warlike global security situation, Papperger can expect to possibly set a new salary record this year. “In view of the security policy environment, Rheinmetall forecasts continued strong sales and earnings growth for the 2024 financial year,” says the Rheinmetall press release. “For the first time in the group’s history, the forecast sales volume is expected to reach 10 billion euros.”
The CEO doesn’t have to worry about his future anyway: Rheinmetall pays him a pension contribution of 1.377 million euros per year.