Taking advantage of the increased transparency through the new regulatory requirements and in the light of changing responsibilities and requirements of the Supervisory Board the amount, structure and determinants of director remuneration in Germany is analyzed in this paper. The examined data set contains more than 300 observations of the Prime Standard companies over the period from 2005 to 2014. The analysis shows that director remuneration was subject to a fundamental transformation process over the past decade. The compensation level has increased and the compensation structure has changed considerably. Both the level and structure of director remuneration are significantly determined by the size of a company. The results, however, also show that a match between the demands made on the Supervisory Board on the one hand and the compensation level and structure on the other hand has not yet been reached. Nevertheless the results also imply a mismatch between the expectations and requirements of the Supervisory board on the one hand and compensation levels and structure on the other.
|Journal||Zeitschrift für Corporate Governance|
|Publication status||Published - 2016|
Bibliographical noteCBS Library does not have access to the material
- Director compensation
- Corporate governance
- Outside directors
- Two-tier system