On the necessity of a corporate governance transparency code

ABSTRACT IN ENGLISH: Due to changes in the German Corporate Governance Code the transparency of compensation of the members of the management board has become a central element of the German corporate governance system. We analyze how the new transparency will influence the average compensation leve...

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Bibliographic Details
Published in:	Zeitschrift für Wirtschaftspolitik 2007-01, Vol.56 (2), p.137-151
Main Authors:	Stadtmann, Georg, Wissmann, Markus
Format:	Article
Language:	ger
Subjects:	Board of directors Compensation Corporate governance Germany Legislation Measurement Organizational analysis Regulation Transparency
Online Access:	Get full text
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Summary:	ABSTRACT IN ENGLISH: Due to changes in the German Corporate Governance Code the transparency of compensation of the members of the management board has become a central element of the German corporate governance system. We analyze how the new transparency will influence the average compensation level. It can not be ruled out that average compensation levels will increase. By applying the so called unraveling theory we are able to show that a law was not necessary and a trend to a higher degree of transparency was on its way anyway. // ABSTRACT IN GERMAN: Die Transparenz der Vorstandsvergütung hat sich zu einem zentralen Element des Deutschen Corporate Governance Systems entwickelt. In diesem Beitrag wird analysiert, wie sich die erhöhte Transparenz auf die Höhe der Entlohnung auswirken wird. Es kann nicht ausgeschlossen werden, dass auf Grund der Transparenz ein Prozess in Gang gesetzt wird, der zu Gehaltssteigerungen führt. Anhand der Unraveling Theorie wird deutlich, dass sich wahrscheinlich auch ohne das VorstOG ein höherer Transparenzgrad eingestellt hätte. Reprinted by permission of Lucius and Lucius Verlagsgesellschaft
ISSN:	0721-3808 2366-0317