DAX executives: Hardy skin in the game

The remuneration systems of DAX companies do not lead to executive board members acting like long-term owners. For example, board members hardly ever come into contact with shares of their own company.

A manager has "skin in the game" if his financial situation is linked to the long-term success of the company. This commitment is intended to ensure that a manager acts farsightedly, taking into account the interests of the owners and other stakeholders. In our study "The Key to Skin the Game," we formulated a catalogue of requirements for executive compensation systems. 

Our four central requirements are as follows: Share ownership, a deferral of short-term compensation components, long holding periods for share-based programs and clawback policies.

Checking the DAX companies for these four requreiments leads to a sobering result. None of the DAX companies' compensation systems fully meets our requirements.

This study in only available in German.

Legal notice

The information contained and opinions expressed in this document reflect the views of the author at the time of publication and are subject to change without prior notice. Forward-looking statements reflect the judgement and future expectations of the author. The opinions and expectations found in this document may differ from estimations found in other documents of Flossbach von Storch AG. The above information is provided for informational purposes only and without any obligation, whether contractual or otherwise. This document does not constitute an offer to sell, purchase or subscribe to securities or other assets. The information and estimates contained herein do not constitute investment advice or any other form of recommendation. All information has been compiled with care. However, no guarantee is given as to the accuracy and completeness of information and no liability is accepted. Past performance is not a reliable indicator of future performance. All authorial rights and other rights, titles and claims (including copyrights, brands, patents, intellectual property rights and other rights) to, for and from all the information in this publication are subject, without restriction, to the applicable provisions and property rights of the registered owners. You do not acquire any rights to the contents. Copyright for contents created and published by Flossbach von Storch AG remains solely with Flossbach von Storch AG. Such content may not be reproduced or used in full or in part without the written approval of Flossbach von Storch AG.

Reprinting or making the content publicly available – in particular by including it in third-party websites – together with reproduction on data storage devices of any kind requires the prior written consent of Flossbach von Storch AG.

© 2024 Flossbach von Storch. All rights reserved.