Act on the Appropriateness of Management Board Remuneration
On 5 August 2009 the Act on the Appropriateness of Management Board Remu-
neration (Gesetz zur Angemessenheit der Vorstandsvergütung) entered into force
with the purpose to place a greater focus on sustainable and long-term corporate
leadership when granting incentives as part of management board remuneration
schemes.
When fxing the total remuneration for individual board members, the
supervisory board of an AG must ensure that such remuneration appropriately
refects both the responsibilities and performance of the board member and the
situation of the company, and it should not exceed the common remuneration,
unless there are specifc reasons to do so. Furthermore, variable remuneration
components should be determined on the basis of several years. The supervisory
board must agree on capping mechanisms in the event of extraordinary develop-
ments. The supervisory board is to limit executive remuneration to an appropriate
amount if the situation of the AG deteriorates.
Since September 2013, a special regulation has applied to financial institutions,
which stipulates that the variable remuneration must not be higher than the fixed
remuneration or, under certain conditions, must not be more than twice as high as
the fixed remuneration.
EU Forecast
euf:ba18f:138/nws-01