Remuneration of management in the financial crisis – a study of the 2009 annual reports of the Euro Stoxx 50 companies

Abstract

Purpose

The purpose of this paper is to study the remuneration of management in the financial crisis. What are the key elements of management payment at the Euro Stoxx 50 companies, does management remuneration comprise long-term incentives in order to overcome principal-agent conflicts and how did the financial crisis affect management payment in terms of payment elements and size?

Design/methodology/approach

Based on the Euro Stoxx 50 financial reports of the fiscal year 2009 and other documents elements and size of management payment are being analysed.

Findings

Management payment has been affected by financial crisis. Among the Euro Stoxx 50 companies management remuneration is quite heterogeneous.

Practical implications

There is still a lack of use of appropriate metrics. There are doubts whether measures like TSR really can align manager's decisions to a sustainable, long-term orientated strategy.

Originality/value

The paper gives an insight view in management remuneration at the Euro Stoxx 50 companies.

Citation

Britzelmaier, B., Doll, A., Häberle, M. and Kraus, P. (2013), "Remuneration of management in the financial crisis – a study of the 2009 annual reports of the Euro Stoxx 50 companies", EuroMed Journal of Business, Vol. 8 No. 3, pp. 209-219. https://doi.org/10.1108/EMJB-05-2013-0028