21.03.2019 - Studies
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.
1 Vgl. Immenkötter, Lehmann (2019): „Der Schlüssel zu Skin in the Game“, Flossbach von Storch Research Institute.
2 Nettozufluss entspricht dem Zufluss aller Vergütungsprogramme des letzten Geschäftsjahres abzgl. 42 % bzw. 45 % Einkommensteuer.
3 Das Unternehmen führt an, dass dieser Rückforderungsanspruch den Herausgabeanspruch im Falle einer ungerechtfertigten Bereicherung nach § 812 BGB ergänzt.
25.01.2019 - Companies
byThe executive compensation system is the central instrument for aligning the interests of managers and stakeholders. An ideal compensation system requires four features: stock ownership guidelines, a deferral of short-term compensation, long holding ...
07.12.2018 - Companies
byThe transparency of executive compensation in Germany is disappointing. Numerous details are lacking in order to be able to understand executive salaries and their financial incentives. In comparison to the previous year, transparency has improved sl ...
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