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Entwicklungen der Vorstandsabfindungen von 2010 bis 2019

Author

Listed:
  • Schottmüller-Einwag Ute

    (Westfälische Wilhelms-Universität Münster, Wirtschaftswissenschaftliche Fakultät, Institut für Organisationsökonomik, Scharnhorststr. 100, 48151 Münster, Germany)

  • Dilger Alexander

    (Westfälische Wilhelms-Universität Münster, Wirtschaftswissenschaftliche Fakultät, Institut für Organisationsökonomik, Scharnhorststr. 100, 48151 Münster, Germany)

Abstract

This study investigates the development of acceptance of recommendation G.13 sentence 1 of the German Corporate Governance Code (dated April 28, 2022, formerly 4. 2. 3 paragraph 4 sentence 1), which provides ceilings for early termination of contracts of members of the executive board. The severance payment amounts of early retiring members of the management board of DAX companies in relation to annual compensation and remaining contract term are significantly lower in the period 2015 to 2019 than between 2010 and 2014. However, there was no evidence of a significant decrease in the amount of severance cases. In the DAX companies’ declarations of conformity pursuant to § 161 AktG, the rate of deviation with respect to the recommendation under consideration is decreasing, but an exceeding of the recommended upper limit is not mentioned in any of the cases in the following declaration of conformity. The paper also examines whether new forms of generous payments to retiring members of the executive board have increasingly emerged.

Suggested Citation

  • Schottmüller-Einwag Ute & Dilger Alexander, 2023. "Entwicklungen der Vorstandsabfindungen von 2010 bis 2019," ORDO. Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft, De Gruyter, vol. 72(1), pages 127-151, December.
    • Handle: RePEc:bpj:ordojb:v:72-73:y:2023:i:1:p:127-151:n:20
    DOI: 10.1515/ordo-2023-2011
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    References listed on IDEAS

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    1. Bebchuk, Lucian Arye & Fried, Jesse & Walker, David I, 2002. "Managerial Power and Rent Extraction in the Design of Executive Compensation," CEPR Discussion Papers 3558, C.E.P.R. Discussion Papers.
    2. Lucian Arye Bebchuk & Jesse M. Fried, 2003. "Executive Compensation as an Agency Problem," Journal of Economic Perspectives, American Economic Association, vol. 17(3), pages 71-92, Summer.
    3. Schottmüller-Einwag Ute & Dilger Alexander, 2020. "Zur Empfehlung von Abfindungsobergrenzen für Vorstandsmitglieder," ORDO. Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft, De Gruyter, vol. 70(1), pages 256-288, April.
    4. Bebchuk, Lucian A. & Fried, Jesse M., 2003. "Executive Compensation as an Agency Problem," Berkeley Olin Program in Law & Economics, Working Paper Series qt81q3136r, Berkeley Olin Program in Law & Economics.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Corporate Governance; Declaration of Conformity; Deviation; Recommendation; Severance Payment; Abweichung; Corporate Governance; Empfehlung; Entsprechenserklärung; Vorstandsabfindung; Corporate Governance; Declaration of Conformity; Deviation; Recommendation; Severance Payment;
    All these keywords.

    JEL classification:

    • D86 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Economics of Contract Law
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • G35 - Financial Economics - - Corporate Finance and Governance - - - Payout Policy
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • K12 - Law and Economics - - Basic Areas of Law - - - Contract Law
    • K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects
    • M55 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Contracting Devices

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