Pay capped for top Deutsche Börse execs

German exchange operator caps pay as regulatory scrutiny continues.

Deutsche Börse has announced it is capping executive pay for board members from this financial year onwards.

Executive pay will be capped at a maximum of €9.5 million per person and comes two years on from a change to its remuneration policy for the executive board.

The pay cap decision was reportedly made at a meeting on Thursday and comes at a time when the exchange is facing intense scrutiny.

Earlier this year, Deutsche Börse chief executive Carsten Kengeter was put under investigation by Hessen state and regulator BaFin for alleged insider trading linked to a share deal done shortly before the exchange announced its plans to merge with London Stock Exchange Group.

Deutsche Börse has already agreed to pay penalties of €10.5 million over the debacle, while Kengeter, who has denied any wrongdoing, paid an additional €500,000 to settle the investigation.

BaFin and Hessen state authorities are currently reviewing the management’s ability to run the exchange.

In a stement, chairman of Deutsche Börse’s supervisory board, Joachim Faber, said: “In the interest of our shareholders, we want to continue to offer the Deutsche Börse executive board competitive incentives for good performance and sustained business success, while at the same time preventing possible and unwanted extremes.”

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