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The impact of Shareholder Rights Directive II on the level and structure of CEO compensation

Year: 2025

Type: article

Abstract: Over the last decade, CEO pay has increased drastically. The Shareholder Rights Directive II (“SRD II”) enacted by the EU is considered one solution to reduce potentially excessive executive pay but its effectiveness is unclear. To this end, this study investigates the impact of SRD II on the level and structure of CEO compensation in German and Austrian firms, compared to Swiss firms that did not experience a change in compensation-related regulation. Findings reveal that SRD II is not effective in reducing executive pay levels but promotes the use of deferred pay.

Source: Maandblad Voor Accountancy en Bedrijfseconomie

DOI: 10.5117/mab.99.134184

Authors: Nguyen Trong Tien Phan, Niklas Meyer

Institution: Vrije Universiteit Amsterdam

Language: English

Topic: Corporate Finance and Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Peace, justice, and strong institutions, Decent work and economic growth

Open Access status: diamond

OpenAlex ID: W4408227293

FWCI:

Cites: 36

Cited by:

Related to: 10