Executive Compensation

Abstract

The empirical analyses of data from large German public companies that are presented in this book show that the introduction of long-term orientated remuneration components for corporate executives increases their willingness to invest in riskier investment portfolios, at least in the short term. The study furthermore demonstrates that a payment model which emphasises equity-based remuneration elements is not sufficient to increase executives' long-term orientation. The results of the study’s final analysis show that payment of executives in large German public companies has become more consistent across the board in recent years.