Discussion Paper of the Institute for Organisational Economics 7/2017
Theoretische Erklärungsansätze für die Entsprechenserklärungen zu Abfindungen für Vorstandsmitglieder
Theoretical Explanation Approaches for the Declarations of Conformity Regarding Severance Payments for Members of the Management Board
In this discussion paper theoretical explanations are sought for the high deviation rate of declarations of conformity regarding severance payments for members of the management board of over 20 % from the recommendation section 4.2.3 para 4 of the German corporate governance code and for the independence of this rate from the membership of the company to the Prime Standard and from the membership of the company to one of the selection indices DAX, MDAX, TecDAX and SDAX. Moreover explanations are sought for the majority of severance payments exceeding the upper limit despite declarations of conformity and the failure to mention this exceedance in the past-oriented part of the following explanation. From the different theoretical models recommendations are derived how to change the arrangement of the severance caps for members of the management board.