Politics

In Election Year, Executive Pay Comes Under Fire

Big bonus and pension deals for top executives at Volkswagen and Deutsche Bank — two flagship companies fighting turmoil of their own making — have been widely criticized in Germany.

Now, the compensation controversies are threatening to become an election-year issue, as the minority Social Democrats seek to chart an uphill path back into the Chancellery.

SPD leader Sigmar Gabriel, the vice chancellor and Chancellor Angela Merkel’s deputy, seized on the issue this week: “We have to demonstrate clearly that we can set limits to greed,” he told the Frankfurter Allgemeine Zeitung.

Mr. Gabriel spoke in general terms about setting new legal limits on boardroom pay in Germany, but even if the SPD doesn’t push through legislation before September’s national election, the issue could shape Ms. Merkel’s bid for a fourth term.