What does a manager do?
A managing director is the legal representative of a company. This means that he assumes responsibility for the company and is also liable. The duties and rights of the management depend on the form and size of the company. For example, in a sole proprietorship, the owner is usually the managing director. The general meeting of a limited liability company appoints the managing director, who then acts for the company. In a corporation, the management is called the board.
The tasks of the management belong to the management. If parts of these tasks are delegated to a manager, the manager still has the responsibility for all tasks.
For the legal representation of the manager gives the manager powers – unless they are anchored in the law. This is the case, among other things, with an authorized officer, whose authority is defined by law.
What tasks and rights does a manager have?
The tasks of a business manager are different. For example, he represents the company and can sign contracts. Likewise, tasks from the fields of accounting, customers, acquisition, strategies or operational activities can be taken over.
For example, a leader could be a leader of a branch. He is responsible for this branch, but the overall responsibility lies with the managing directors. Important decisions must also be made with him, and a manager is not authorized to perform certain tasks. Among other things, he is not allowed to sign any balance sheets nor to file for bankruptcy.
The term senior management is often used for the higher management level of a company. This shows the difference: While this leadership assumes significant and responsible responsibilities, it is under the leadership of the hierarchy.
The salaries of the managing directors in the middle class
Since 2006, the salaries received by the boards of major corporations must be disclosed. Legislators decided to do this in order to provide some transparency to the shareholders, because after all, the shareholders are the owners of these companies.
The basic idea, however, was that perhaps the publication of salaries could lead to undercutting the usual dizzying heights of salaries in the United States. Unfortunately, exactly the opposite has arrived. In principle, it has come to a scramble, who is now the richest, the highest paid or the boss with the most recognition.
Modesty looks different. Before the statutory obligation to publish the remuneration in the boardrooms were still moderately tempered, now they are very difficult for the shareholders to understand.
Take Lufthansa as an example. In 2003, the basic salary of all members of the Executive Board, which had been three, was 1.8 million euros. 2011 was already at 2.9 million euros. In 2011, a fourth board was added and the remuneration grew to 3.8 million euros. In purely mathematical terms, this is a very modest increase in salaries by 6%. On closer inspection, however, it can be seen that from 2010 to 2011, salaries have gone up by 50%. And yet the Lufthansa Executive Board only achieves the fifth place in the rankings.
A graph can illustrate the development of executive salaries in the DAX sector. It shows an increase of 56% between 2003 and 2010.
Inevitably, the question now arises as to whether such high salaries are customary even among middle classes. The evaluation of 7,741 salary data shows that the salaries of the managing directors in the medium – sized enterprises rose only very slightly in comparison to the DAX executive board. The graph allows comparisons of what salaries were and are common in relation to the size of the business.