Management compensation and the economic crisis: longitudinal evidence from the German chemical sector

Making use of unique balanced panel data for the German chemical sector from the years 2008 to 2011, we explore the extent to which managers’ compensation was affected by the economic crisis and the extent to which it increased afterwards. Carrying out longitudinal analyses, we find that, on average, bonus payments (in contrast to fixed salaries) decrease considerably during the crisis. The economic upturn in 2011 then leads to an average...