Bayer, Christian; Burhop, Carsten - EconWPA - 2004
incentives from the correlation of executive pay and firm performance. We use the reform of the German stock companies act in … 1884 as such a major shift and estimate the sensitivity of the pay to firm performance between 1870 and 1910 for executives …. Accordingly, we find the pay-performance sensitivity to decrease significantly after the reform. While executives received a bonus …