Executive Compensation in the Netherlands

This paper shows the recent developments in the structure of Dutch executive pay contracts. An empirical study based on remuneration data on the executive board members of 71 Dutch listed companies over the period of 2002-2004 has revealed a number of clear trends in this area. This paper demonstrates that the political interference in compensation practices, for example in the form of corporate governance guidelines, has had a great impact on the design of compensation structures, but often at the expense of the economical efficiency of these arrangements. The main objective of this study is to increase insights into Dutch executive compensation arrangements and the way in which these have evolved under the influence of corporate governance requirements. Adapted from the source document.