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

See all articles by Yves Metzner

Yves Metzner

Philipps University Marburg

Marc Steffen Rapp

University of Marburg - School of Business & Economics; University of Marburg - Marburg Centre for Institutional Economics (MACIE)

Michael Wolff

University of Göttingen

Date Written: November 1, 2012

Abstract

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

Metzner, Yves and Rapp, Marc Steffen and Wolff, Michael, Aktuelle Entwicklungen bei der Aufsichtsratsvergütung (Current Trends in the Compensation of Non-Executive Directors in Germany) (November 1, 2012). Der Aufsichtsrat, Vol. 9, No 11, November 2012. Available at SSRN: https://ssrn.com/abstract=2170021

Yves Metzner

Philipps University Marburg ( email )

Universitätsstrasse 24
Marburg, D-35032
Germany

Marc Steffen Rapp (Contact Author)

University of Marburg - School of Business & Economics ( email )

Am Plan 2
Marburg, D-35037
Germany

University of Marburg - Marburg Centre for Institutional Economics (MACIE) ( email )

Am Plan
Marburg, 35032
Germany

Michael Wolff

University of Göttingen ( email )

Platz der Göttinger Sieben 3
Göttingen, DE 37073
Germany

HOME PAGE: http://www.contolling.uni-goettingen.de

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