diff --git a/Makefile.am b/Makefile.am
index 599b54738f39427d1f37fbd0c2d159368ac34c1f..660daa2d3c04098293dea09ad6ff55b7b86b97bb 100644
--- a/Makefile.am
+++ b/Makefile.am
@@ -16,4 +16,5 @@ depgraph.dot: ganeti/*.py
 	  --reports y --int-import-graph $@ --persistent n ganeti >/dev/null
 
 install-exec-local:
-	@mkdir_p@ ${localstatedir}/lib/ganeti ${localstatedir}/log/ganeti
+	@mkdir_p@ "$(DESTDIR)${localstatedir}/lib/ganeti" \
+	  "$(DESTDIR)${localstatedir}/log/ganeti"