@masterthesis{Mueller, type = {Bachelor Thesis}, author = {M{\"u}ller, Felix}, title = {Alternative Performance Measures in Board Compensation - Theoretical Analysis and Empirical Investigation of German DAX Companies}, url = {http://nbn-resolving.de/urn:nbn:de:hbz:1383-opus4-7178}, school = {Hochschule Rhein-Waal}, pages = {69}, abstract = {This work investigates in how far Alternative Performance Measures (APM) are suitable to serve as the benchmark for achievement of financial targets by board members of stock-listed companies. Therefore, the concept of board compensation is outlined, the phenomenon of APM is defined, and the main points of scholarly interest in both subject areas are addressed. Through reviewing existing literature that investigates the use of APM within board compensation systems, the rationale for their use and the associated (dis-)advantages are determined. It is shown that the use of APM in board compensation can lead to greater alignment between board members and shareholders' interests, in-crease sensitivity of pay to performance, and improve the information content of APM published elsewhere. However, using APM can also lead to excessive pay, which may be a result of managerial opportunism. Strong corporate governance mechanisms ap-pear to be relevant for ensuring an appropriate use of APM in compensation systems. The use of APM within board compensation schemes of large German stock-listed com-panies in the fiscal year 2019 is investigated empirically. The relevance of such measures is found to be high, and they determine a large portion of total variable pay. The specific APM used within compensation schemes and those disclosed in annual reports are partially divergent, especially when it comes to growth-related, capital effi-ciency-related, and capital structure-related measures. Nonetheless, APM used in com-pensation systems are identified as a subgroup of APM disclosed in the annual report.}, language = {en} }