Remuneration Governance in Germany and the United Kingdom

TL;DRAbstract

Every year during the so-called “annual general meeting season” the remuneration of top managers makes it into the headlines of newspapers and onto the political agenda. Excessive executive remuneration is a long-standing problem, which has repeatedly caused regulatory action in the last two decades. 
\nThe scholarly debate on executive remuneration is multifaceted and due to frequent reforms, quickly dated. This thesis focuses on remuneration governance, which is the system by which executive remuneration is set and monitored. In a critical comparison of the current German and UK remuneration governance rules it questions the effectiveness of the three main mechanisms of remuneration governance – namely the (supervisory) board as the remuneration setter, the disclosure of executive remuneration, and the shareholder vote on executive remuneration. Taking the latest reforms into account, the strengths and weaknesses of the two systems are identified. The thesis finds that the

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