COMPLIANCE AND TRANSPARENCY OF GERMAN SUPERVISORY BOARD COMPENSATION

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Abstract

Due to some new developments in the German Corporate Governance Codex (GCGC) as well as the introduction of new laws several aspects of the supervisory board compensation are subject to change. In a first step we analyze the size and structure of DAX 30 companies’ supervisory board compensation. One novelty of the article is that we perform this analysis on a person specific level instead of relying on firm level data. In a second step, we examine how well DAX 30 firms comply with the GCGC on supervisory board compensation both with regard to the recommended structure and with regard to the recommended detail in disclosure. We construct a compliance scoring model and find that overall a score of 70 % compliance has been reached.

Keywords: Executive Compensation, Supervisory Board, Compliance, Transparency, Corporate Governance Codes

How to cite this paper: Koch, R. (2011). Compliance and transparency of German supervisory board compensation. Corporate Ownership & Control, 8(3), 94-107. https://doi.org/10.22495/cocv8i3p8