# Adequate compensation scheme

- Canonical URL: https://www.gerhardmerk.de/adequate-compensation-scheme
- Post ID: 587619
- Modified: 2023-07-25T20:47:17+00:00
- Language: en

## Definition

Pursuant to § 3 of the Remuneration Ordinance for Institutions, a compensation scheme is adequate if - incentives for management and employees to take disproportionately high risks are avoided and - the compensation scheme does not conflict with the monitoring function of the control units. - See bonus system, insurance compensation regulations. - Cf. BaFin Annual Report 2013, p. 72 f. (new statutory requirements for compensation systems since the beginning of 2014), p. 106 (deficiencies discovered during the audit of compensation systems). Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

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