Manfred Knof, the chief executive of Allianz Germany, said in an interview that he supports making executive compensation dependent on performance.
“I find it correct for a considerable portion to be deferred and made dependent on sustainable business decisions by the executive – and that corresponds exactly to our DNA,” Mr. Knof told Handelsblatt.
There’s growing political pressure in Germany for large corporations to reign in lavish executive compensation. In January, Germany’s financial regulator, BaFin, agreed to a new set of compensation rules aimed at holding bank executives accountable for their performance.
Under the new rules, banks are to withhold up to 40 percent of an executive’s bonus for up to five years to review whether or not the executive’s performance merits the compensation. Executives can also be forced to return their bonuses up to 7 years after receiving them, if they have committed malfeasance that has done damage to the company.
Read the full interview in Thursday’s Handelsblatt Global.