Zur Empfehlung von Abfindungsobergrenzen für Vorstandsmitglieder

Schottmüller-Einwag Ute () and Alexander Dilger ()
Additional contact information
Schottmüller-Einwag Ute: Institut für Organisationsökonomik, Wirtschaftswissenschaftliche Fakultät, Westfälische Wilhelms-UniversitätMünsterGermany

ORDO. Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft, 2019, vol. 70, issue 1, 256-288

Abstract: This study examines whether the severance payments to members of the management board of listed companies are restricted by recommendation 4.2.3 paragraph 4 sentence 1 of the German Corporate Governance Code dated February 7, 2017. However, the agreement proposed there to limit the amount of severance payments in the employment contract does not have any legal binding effect if the contract is terminated prematurely by means of a termination agreement. The analysis of extensive empirical data on declarations of conformity by all CDAX companies in the years 2010 to 2014 shows that significantly more than 20 percent of companies reject the agreement of the recommended upper limit. Furthermore, it can be shown for the actual severance ratios of prematurely retired executive board members of DAX companies in the years 2010 to 2014 that the majority of the recommended upper limits were exceeded despite declarations of conformity to the contrary. On the basis of the empirical results, a design recommendation for practice is derived, which can help the recommendation to have a stronger impact.

Keywords: Corporate Governance; Declaration of Conformity; Recommendation; Severance Payment; Corporate Governance; Empfehlung; Entsprechenserklärung; Vorstandsabfindung; Corporate Governance; Declaration of Conformity; Recommendation; Severance Payment (search for similar items in EconPapers)
JEL-codes: D71 D86 G34 G38 J33 J63 K12 K31 M12 M52 M55 (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://doi.org/10.1515/ordo-2020-0013 (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

Related works:
Journal Article: Zur Empfehlung von Abfindungsobergrenzen für Vorstandsmitglieder (2020)
Working Paper: Zur Empfehlung von Abfindungsobergrenzen für Vorstandsmitglieder (2019)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bpj:ordojb:v:70:y:2019:i:1:p:256-288:n:12

Ordering information: This journal article can be ordered from
https://www.degruyter.com/journal/key/ordo/html

DOI: 10.1515/ordo-2020-0013

Access Statistics for this article

ORDO. Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft is currently edited by Christian Müller

More articles in ORDO. Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft from De Gruyter
Bibliographic data for series maintained by Peter Golla ().