This paper examines how direct involvement of employees in corporate governance affects executive compensation. German … employees. For identification, we exploit this discontinuity, a law change which grants employees more influence over … employee voice is strengthened. Employees are also better off, as evidenced by increased employment protection. These results …

,878 employees filtered from the EU-SILC database were used for calculations. Stepwise regression analysis was used to identify …

policy of employees. Empirical results suggest that in the early stage of CEO tenure, the CEO tends to increase both the … salary and the pay-performance sensitivity of employees to motivate employees, the effect can be more significant for the … employees with stronger bargaining power in the labor market. Further analysis finds that the effect of CEO tenure mainly exists …