On the Structure and Size of Executive Compensation Packages in German Prime Standard Firms (Struktur und Höhe von Vorstandsbezügen in deutschen Prime Standard Unternehmen)
Die Aktiengesellschaft, 8/2009, R156-R160
8 Pages Posted: 11 Mar 2009 Last revised: 31 Dec 2009
Date Written: March 10, 2009
We present selective results of an analysis of compensation practices in German Prime Standard firms in the period between 2005 and 2007. Four results emerge. First, analyses based on DAX30 firms lead to a biased view, since the amount as well as the structure of the executive compensation is characterized by substantial size effects. Second, despite the very positive market environment during the analysed time period, more than 50% of an average executive's remuneration is determined by the fixed salary. Third, the relevance of stock based compensation (both with respect to the prevalence as well as the relative weight) is commonly overestimated. Finally, deficits reveal concerning the transparency of reporting, with regard to performance measures to evaluate the bonus or the information shown in the fair value of stock based compensation.
Note: Downloadable document is in German.
Keywords: Executive compensation, remuneration, Germany
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