Front Cover; The Theory and Practice of Directors' Remuneration: New Challenges and Opportunities; Copyright page; Contents; List of Contributors; Introduction from Editors; Practitioners' Outlook; Academic Outlook; Director Remuneration is a Matter of Growing Importance in the EU; Legislation on Directors' Remuneration; Corporate Governance Codes; Remuneration Should Be Guided by Market Demands and Linked to the Company's Results; EU Commission Recommendation; Some of the Experience of Member States; Three Recommendations on Disclosure of Remuneration Policy Remuneration Should Promote the Long-Term SustainabilityRemuneration Policy; Remuneration Policies in the Financial Services Sector; Section I: Theory of Corporate Governance and Directors' Remuneration; Chapter 1 Corporate Governance and Remuneration; Introduction; The Theory of the Firm -- The Theory of Transaction Costs?; Beyond the Firm and Market Dichotomy; Incomplete Remuneration Contracts; Agency Theory; Adverse Selection; Moral Hazard; Different Agency Conflicts; Management and Collective Production; Outlook and Conclusion; References; Chapter 2 Directors' Remuneration and Motivation IntroductionAgency Theory and Managerial Compensation; Base Salary; Bonus; Stock Options; Employee Motivation; Current Intrinsic Motivator: Takeover Threats; Well-Balanced Packages; Conclusion; References; Chapter 3 Executive Compensation in the 21st Century: Future Directions; The 21st Century; Compensation and Motivation; Compensation Plans: Pay-Performance Link; Redefining Performance Evaluation in the Age of Sustainability; Conclusion; References; Section II: Cross-Industrial Remuneration Practices Analysis; Chapter 4 Financial Companies; Introduction The Crisis and Its Effects on Remuneration Governance in Financial InstitutionsElements of the Corporate Governance of Financial Institutions; Pre- and Post-Crisis Remuneration Governance; European Initiatives for Enhanced Governance and Remuneration; Corporate Governance; Remuneration; Structuring Variable Bonuses over Time; Discounting; Alternative Discounting Functions; Exponential Discounting; Hyperbolic Discounting; Quasi-Hyperbolic Discounting; Evaluation; Conclusion and Prospects; References; Chapter 5 Industrial Companies; Introduction; Background; Literature on CEO Compensation Research DesignResults; Directors Remuneration Policy; Directors Remuneration Design; Directors Remuneration Factors; Board's Role in Directors Remuneration; Accounting Regulation; Conclusion; References; Section III: Cross-Country Remuneration Practices Analysis; Chapter 6 Directors' Remuneration in the United States; Introduction; Remuneration Regulation and Reporting; Remuneration Design; Empirical Evidence on Director Remuneration; The Determinants of Director Remuneration; Characteristics of Firms Adopting Outside Director Stock-Option Plans