German exchange giant Deutsche Boerse has set an upper limit on executive pay, it announced this evening in a statement.
At a meeting today, the firm’s supervisory board decided to cap total pay at €9.5m (£8.4m), including both fixed and variable elements of remuneration. The limit will take effect this year.
Deutsche Boerse, Europe’s largest exchange operator, said it has consulted external remuneration experts as well as its own personnel department.
Joachim Faber, chairman of Deutsche Boerse’s supervisory board, said: "In the interests of our shareholders, we want to continue to offer the executive board of Deutsche Börse AG competitive incentives for good performance and sustainable corporate success, while at the same time avoiding possible and unwanted fluctuations. This is achieved with the upper limit in the adjusted remuneration model.”
The move comes as the firm tries to move on from an insider trading scandal which centred on share price purchases around the aborted bid for the London Stock Exchange Group at the beginning of the year.
Last week the firm agreed to pay a €10.5m fine to prevent an investigation by Frankfurt prosecutors into allegations of insider trading by chief executive Carsten Kengeter.
Kengeter bought around €4.5m of stock in Deutsche Boerse around two months before it announced the merger talks. The talks later collapsed when European regulators rejected it on competition grounds.
The firm said the purchase was related to its remuneration programme and a December deadline set by the group's remuneration programme.