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Aktienbasierte Langfristanreize im Rahmen der Vorstandsverguetung: Evidenz auf Basis Deutscher Prime Standard Unternehmen


  • Rapp, Marc Steffen
  • Schaller, Philipp
  • Wolff, Michael


While in the US stock-based incentives are commonly used since the 50s of the last century, in Germany they were invented only some ten years ago. Even in 1996 firms faced considerable regulatory difficulties when willing to grant such incentives. In the meantime the legal environment has changed significantly and today even the German Corporate Governance Code encourages firms to grant stock-based long-term incentives. However, examining a hand-collected unique data-set we find that even only 37% of all German Prime Standard firms have used stock-based long-term incentives in 2006. In these firms stock-based long-term incentives account for less that 23% of the overall compensation to members of the management board. Our empirical analysis reveals that in particular large firms with high RnD expenditures, substantial opaqueness and high free-float are likely to grant stock-based long-term incentives. Furthermore, we find that high inside ownership and large blockholders are negatively correlated with the probability of granting stock-based long-term incentives. Finally, we find that an externally hired CEO increases the likelihood of stock-based incentives, in particularly if the chairman of the supervisory board is a former executive of the firm. In sum, our evidence is consistent with the view that shareholders use stock-based incentives as a governance mechanism to mitigate the agency problem in complex firms with high information asymmetry.

Suggested Citation

  • Rapp, Marc Steffen & Schaller, Philipp & Wolff, Michael, 2009. "Aktienbasierte Langfristanreize im Rahmen der Vorstandsverguetung: Evidenz auf Basis Deutscher Prime Standard Unternehmen," CEFS Working Paper Series 2009-03, Technische Universität München (TUM), Center for Entrepreneurial and Financial Studies (CEFS).
  • Handle: RePEc:zbw:cefswp:200903

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    References listed on IDEAS

    1. Cockburn, Iain & Griliches, Zvi, 1988. "Industry Effects and Appropriability Measures in the Stock Market's Valuation of R&D and Patents," American Economic Review, American Economic Association, vol. 78(2), pages 419-423, May.
    2. Trigeorgis, Lenos, 1993. "The Nature of Option Interactions and the Valuation of Investments with Multiple Real Options," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 28(01), pages 1-20, March.
    3. Shigeki Kamiyama & Jerry Sheehan & Catalina Martinez, 2006. "Valuation and Exploitation of Intellectual Property," OECD Science, Technology and Industry Working Papers 2006/5, OECD Publishing.
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    More about this item


    executive compensation; incentives; corporate governance; Germany;

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects


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