FRANKFURT – Executives at German savings banks (Sparkassen) continue to rank among the highest earners in the public sector, demonstrating above-average salary growth, according to the "Public Pay Study 2026" from Zeppelin University in Friedrichshafen. The comprehensive study, which was obtained in advance by Handelsblatt, paints a detailed picture of executive compensation within public enterprises.

The average total earnings for Sparkassen executives in 2024 reached €439,000. This figure is more than double the average compensation for executives in other municipal companies, excluding Sparkassen and public broadcasting institutions. This significant disparity highlights a notable trend in executive remuneration within the financial services sector of the public domain.

Beyond their substantial base salaries, Sparkassen executives also experienced robust salary development, placing them in a top tier across industries. In the reporting year, their median compensation saw an increase of 5.3 percent, outperforming the cross-industry median of 4.1 percent. Only the IT/digitalization and aviation/seaport sectors reported even more pronounced salary increases.

The study’s methodology, utilizing the median rather than the average, offers a more stable representation of typical earnings, less susceptible to distortion by outlier high or low salaries. For the salary development analysis, the research specifically focused on managers who were employed in their roles in both 2024 and the preceding year, thus excluding the impact of job changes or promotions on the growth figures.

Ulf Papenfuss, Professor of Public Management & Public Policy at Zeppelin University and a co-author of the study, commented on the findings. "In comparison to other sectors, for example, large energy suppliers and municipal utilities, the compensation is strikingly high," Papenfuss stated. He also serves as the scientific chairman of the expert commission for the "German Public Corporate Governance Code."

The German Savings Banks and Giro Association (DSGV) has contested the study’s cross-industry comparisons. A spokesperson for the DSGV conveyed to Handelsblatt, "This study, like others, compares apples and oranges." The association argues that the salaries of Sparkassen executives are determined by democratically elected supervisory boards and align with market standards to attract and retain qualified individuals. "Within the banking sector, Sparkassen compete at all levels with other market participants for the most capable individuals," the DSGV spokesperson added.

Papenfuss acknowledges the DSGV’s argument, recognizing the stringent regulatory requirements for leadership roles in Sparkassen. Supervisory authorities meticulously vet candidates for leadership positions in banks and savings banks, with industry expertise being a critical factor. "The labor market for Sparkassen executives is more constrained due to regulatory demands, and this must be considered in compensation decisions," Papenfuss conceded. "If it can be demonstrably proven that no one with the required qualifications can be attracted at a lower salary, that is a strong argument for the corresponding compensation level."

Despite these specific market dynamics, Papenfuss maintains that cross-industry comparisons provide a valuable "additional reference framework." He believes that "the appropriateness of remuneration should also be reflected in comparison to companies in other sectors with comparable size, complexity, and management responsibility."

A significant point of contention for Papenfuss is the limited transparency in executive compensation at Sparkassen. Only about one-third of Sparkassen publicly disclose their executive remuneration. While the proportion of executives whose personal salaries are disclosed (32.8 percent) is higher than the municipal average (19.6 percent), Papenfuss finds it insufficient. "It is no longer contemporary to lag behind areas where complete disclosure has long been standard," he asserted, calling for increased pressure, "if necessary," to achieve greater transparency. In contrast, public broadcasting institutions report 100 percent transparency in executive compensation.

Fewer Million-Euro Earners in 2024

Despite the overall robust compensation levels and salary growth, the number of executives earning seven-figure salaries at Sparkassen decreased in 2024. An analysis of the disclosure reports from the 85 largest Sparkassen revealed that 55 executives earned over €1 million in 2024, a notable reduction from the over 90 million-euro earners reported in 2023.

It is important to note that these disclosure reports, unlike the annual reports analyzed by the Public Pay Study, include pension payments for retirement provisions. These direct pension commitments can represent a substantial financial obligation for Sparkassen. For instance, Sparkasse Essen and Landessparkasse zu Oldenburg explicitly attribute their million-euro payments to necessary provisions for pension reserves.

The calculation of these pension liabilities is complex and heavily influenced by interest rate developments. Rising interest rates can decrease the financial burden, while falling rates increase it. During the prolonged period of low interest rates, these direct pension commitments became particularly burdensome.

Consequently, most regional Sparkassen associations have been advising their member institutions to refrain from offering direct pension commitments in new executive contracts for some time. This trend was already evident in a Handelsblatt survey conducted two years prior. The associations in Rhineland and Westphalia-Lippe, for example, have advised their Sparkassen since 2017 to provide executives with a "contribution to the financing of retirement income" rather than direct pension promises, reserving direct commitments for exceptionally justified cases.

In Thuringia, a compensation decree from the Ministry of Finance issued in 2021 mandates that Sparkassen contribute on a "contribution-oriented benefit commitment" basis to a support fund. Similarly, in Bavaria, the regional association recommends that Sparkassen adopt a "contribution-oriented benefit commitment" into a support fund.

The extent to which Sparkassen adhere to these recommendations is not publicly known. However, some Sparkassen provide specific details in their remuneration reports. For example, Kreissparkasse Köln has not offered pension commitments to new board members since 2017. Instead, they provide a fixed allowance of up to 35 percent of their annual base salary for independent retirement planning.

In 2024, the board of Kreissparkasse Köln was composed of an equal number of members with pension commitments and those responsible for their own retirement provision. This shift contrasts with the situation in 2023, when there were three million-euro earners at the Cologne-based Sparkasse; by 2024, this number had decreased to one.

At Stadtsparkasse Düsseldorf, there were no longer any million-euro earners on the board in 2024, down from three previously. Like Kreissparkasse Köln, Stadtsparkasse Düsseldorf now offers new top executives an allowance for retirement planning. In 2024, two board members benefited from this arrangement.

Women Earn More Than Men in Sparkassen Executive Roles

Beyond the absolute compensation figures, the Public Pay Study 2026 also investigated gender-based pay disparities among executive board members. Across all analyzed sectors, top female managers earned €155,000 on average, compared to €193,000 for their male counterparts. This represents a significant gap in executive compensation nationwide.

However, the situation within Sparkassen presents a different picture. For female executives, the median total compensation in 2024 stood at €469,000, while for male executives, it was €438,000. This indicates that, at the executive level within Sparkassen, women earned more than men on average in the reporting year.

Despite this seemingly favorable pay gap, women remain underrepresented in the executive ranks of Sparkassen. Surveys conducted by the analysis firm Barkow Consulting show that in the second quarter of 2026, their share was only 10.4 percent. In the reporting year 2024, this figure was even lower, at approximately eight percent.

"Individual persons or a small number of individuals can therefore significantly influence the median and the mean," noted Professor Papenfuss. He explained that in the business year under review, the few women in executive positions were often employed by larger Sparkassen. As is common in many industries, larger institutions tend to offer higher compensation than smaller ones.

First publication: August 19, 2026, 00:00 CET.