Determinants of executive board remuneration new insights from Germany
Publikation: Beiträge in Zeitschriften › Zeitschriftenaufsätze › Forschung › begutachtet
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in: Corporate Ownership & Control , Jahrgang 11, Nr. 4, 01.01.2014, S. 96-113.
Publikation: Beiträge in Zeitschriften › Zeitschriftenaufsätze › Forschung › begutachtet
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TY - JOUR
T1 - Determinants of executive board remuneration new insights from Germany
AU - Velte, Patrick
AU - Eulerich, Marc
PY - 2014/1/1
Y1 - 2014/1/1
N2 - Board remuneration in German listed companies becomes more and more subject of public and political discussion, concerning the presumed lack of transparency and too short-term orientation. Besides the increasing regulatory activity, the arrangement of board compensation constitutes a focal economic issue of current empirical corporate governance research. The purpose of our analysis is to identify factors determining the amount and the structure of board compensation in Germany. Our study of 128 German listed companies for the business year 2011 investigates the impact of company-, performance and corporate governance-related factors on board remuneration by means of a multivariate-regression analysis. The analysis indicates that company size has a positive impact and leverage a negative on management board compensation. Furthermore, ROE and return on total capital, as indicators for performance-related variables, both have a positive impact on the average level of management remuneration. However, the corporate governance-related characteristics as ownership concentration and size of the supervisory board have no significant impact on management board remuneration.
AB - Board remuneration in German listed companies becomes more and more subject of public and political discussion, concerning the presumed lack of transparency and too short-term orientation. Besides the increasing regulatory activity, the arrangement of board compensation constitutes a focal economic issue of current empirical corporate governance research. The purpose of our analysis is to identify factors determining the amount and the structure of board compensation in Germany. Our study of 128 German listed companies for the business year 2011 investigates the impact of company-, performance and corporate governance-related factors on board remuneration by means of a multivariate-regression analysis. The analysis indicates that company size has a positive impact and leverage a negative on management board compensation. Furthermore, ROE and return on total capital, as indicators for performance-related variables, both have a positive impact on the average level of management remuneration. However, the corporate governance-related characteristics as ownership concentration and size of the supervisory board have no significant impact on management board remuneration.
KW - Management studies
KW - Corporate governance
KW - Executive board remuneration
KW - Financial incentives
KW - Firm performance
KW - Ownership concentration
KW - Supervisory board
KW - Agency theory
KW - Corporate governance
KW - Executive board remuneration
KW - Financial incentives
KW - Firm performance
KW - Ownership concentration
KW - Supervisory board
UR - https://www.mendeley.com/catalogue/0f9c5888-618b-399f-99da-5b97b23bb262/
U2 - 10.22495/cocv11i4p7
DO - 10.22495/cocv11i4p7
M3 - Journal articles
AN - SCOPUS:84904961849
VL - 11
SP - 96
EP - 113
JO - Corporate Ownership & Control
JF - Corporate Ownership & Control
SN - 1727-9232
IS - 4
ER -