Determinants of executive board remuneration new insights from Germany

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Determinants of executive board remuneration new insights from Germany. / Velte, Patrick; Eulerich, Marc.
In: Corporate Ownership & Control , Vol. 11, No. 4, 01.01.2014, p. 96-113.

Research output: Journal contributionsJournal articlesResearchpeer-review

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@article{e6843b8a30cb4789995b0a2e85717b2a,
title = "Determinants of executive board remuneration new insights from Germany",
abstract = "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.",
keywords = "Management studies, Corporate governance, Executive board remuneration, Financial incentives, Firm performance, Ownership concentration, Supervisory board, Agency theory, Corporate governance, Executive board remuneration, Financial incentives, Firm performance, Ownership concentration, Supervisory board",
author = "Patrick Velte and Marc Eulerich",
year = "2014",
month = jan,
day = "1",
doi = "10.22495/cocv11i4p7",
language = "English",
volume = "11",
pages = "96--113",
journal = "Corporate Ownership & Control ",
issn = "1727-9232",
publisher = "Virtus Interpress",
number = "4",

}

RIS

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 -

DOI

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