Behavioral Accounting and Corporate Governance: Compensation Regimes with the Example of UBS Switzerland
20 Pages Posted: 6 Oct 2010 Last revised: 9 Oct 2010
Date Written: October 1, 2010
Abstract
In this article compensation regimes as an application of behavioral accounting research in the field of corporate governance are investigated and underlying incentive regimes are described. During the financial crisis 2007-2009 UBS Switzerland revised its compensation regime for executive and non-executive managers. I find that the revised compensation regime incorporates substantial elements of the prevailing behavioral theories of principle-agency and stewardship and that different forms of variable and fixed compensation components are established with the intend to adjust to the specific type of management behavior.
Keywords: Behavioral accounting, corporate governance, Switzerland
JEL Classification: M4, M41
Suggested Citation: Suggested Citation