Executive Board and Supervisory Board Compensation
Dr. Heinz Evers brings in experience from over 300 expert reports.
The German Act on the Appropriateness of Management Board Compensation (VorstAG), which came into force on August 5, 2009, and the correspondingly revised German Corporate Governance Code (DCGK) have brought significant changes to the practice of executive compensation and its determination by the supervisory board.
With new requirements regarding the determination of management board compensation, the VorstAG aims to correct undesirable developments and create incentives for sustainable, long-term corporate governance. At the same time, the new law is to concretise the supervisory board’s accountability for the structuring of management board compensation and improve transparency for shareholders and the public.
The law initially only requires this for listed stock corporations. Nevertheless, it also has an effect on the compensation of management boards of non-listed stock corporations as well as managing directors of GmbHs and GmbH & Co. KGs with co-determination and supervisory boards. These are more than 700 companies in Germany that employ more than 2,000 people.
Baumgartner & Partner advises proprietors, supervisory boards, management boards, and managing directors alike. With experience from more than 300 expert reports on the appropriateness of board and executive compensation, Dr. Heinz Evers, Associate Partner of Baumgartner & Partner Unternehmensberatung, ranks among the most sought-after experts in Germany. Our consulting services particularly include:
- Expert reports on the appropriateness of supervisory board and advisory board compensation in terms of the amount, structuring, and differentiation
- Market comparisons and expert reports on the appropriate amount and structure of the total remuneration of management board members and managing directors
- Realignment of compensation governance processes
- Seminars for supervisory board members