Germany's Merkel takes aim at executive salaries

By Madeline Chambers

BERLIN, Dec 11 (Reuters) - Germany's conservative Chancellor Angela Merkel urged employers to take heed of a public outcry about excessive corporate pay on Tuesday and said top executives should be open about their earnings.

Merkel, head of the Christian Democrat (CDU) party which traditionally pursues business-friendly policies, stressed she had no plans to impose a legal cap on salaries.

But she pleaded for restraint and transparency.

"No one is against rewarding success," Merkel said in a speech to the German Employers' Association, adding, however, that Germans were starting to get angry about executives who took big risks which were not reflected in their salary.

"My plea is: take this debate seriously. Do not dismiss it as a jealousy debate, do not brush it aside."

"The more openly industry embraces this debate, so much the better for our society," she said, mentioning the possibility of a voluntary code for firms.

Top bosses in Germany generally earn significantly less than their counterparts in the United States or Britain, and many German companies publish only an overall total for the board's pay and do not break down individuals' salaries.

German media have homed in on fat cat pay, especially as disposable income is falling for employees on lower incomes.