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Germany: Siemens announces the withdrawal of variable pay for board members

Fixed pay, a new trend?  The remuneration of board members (+52% since 2000) hasn’t been left out of the growing debate on the remuneration of corporate managers (+35% since 2000).  In Germany, where dual management is particularly widespread, the most common remuneration structure for board members is divided into a fixed part and a variable part, plus attendance fees.  Currently, a majority of businesses listed on the DAX30, the Frankfurt stock exchange, applies this system.  Among these, 40% added a requirement of long-term yield and development to the variable component (Towers Watson’s “Ausichtsratvergütung DAX 2010” study).  Only three DAX businesses (Daimler, Adidas and Fresenius Medical Care), soon four with Siemens, chose fixed remuneration only.  Allianz is also thinking about joining them.

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