Aktuelle Entwicklungen bei der Aufsichtsratsvergütung (Current Trends in the Compensation of Non-Executive Directors in Germany)
Der Aufsichtsrat, Vol. 9, No 11, November 2012
6 Pages Posted: 2 Nov 2012 Last revised: 4 Dec 2012
Date Written: November 1, 2012
We document three current trends in the compensation of non-executive directors in Germany. First, firms increasingly use performance-insensitive variable pay components, like committee and attendance fees. Second, this comes at the expense of performance-oriented variable pay components, which often are eliminated altogether. Third, the performance-insensitive pay components increase in levels. While we appreciate the first trend, we criticize the second one. Overall, we argue that the level of pay for non-executive directors is still (too) low in Germany.
Note: Downloadable document is in German.
Keywords: Director Compensation, Corporate Governance, Outside Directors, Two-tier System
JEL Classification: J33, G30, G34
Suggested Citation: Suggested Citation