Executive compensation is designed to create incentives for CEOs to act in the best interest of shareholders. Short-term (bonus) and equity-based incentives induce risk taking behaviors of the CEO that could further change a firm's risk exposure. This article examines the linkage between...

In the aftermath of the Mannesmann case the German corporate law of executive compensation has been increasingly relying on incentive-based payments until the recent financial crisis. By including benchmarks for reasonable compensation in § 87 para. 1 of the Stock Corporation Act (AktG) as...

We analyze a hand-collected dataset of 1682 executive compensation packages at 34 firms included in the main German stock market index (DAX) for the years 2009-2017 in order to investigate the impact of the 2009 say on pay legislation. The findings provide important insights beyond the German...