It added that directors of German companies are granted "a broad scope of discretion" in deciding how to compensate executives.

Emerson settled shareholder litigation last month by agreeing to pay $7.5 million and to leave decisions about compensating top executives to independent board members.

He also asked Congress to reopen the debate on the accounting treatment of stock options used to compensate executives.

That puts them among the best- compensated corporate executives.

Select, compensate, monitor and replace key executives and oversee succession planning.

The American way of compensating top executives - with opportunity for tremendous riches from bonuses and incentives tied to a rising stock price - certainly pays better.

It would just mean that companies that want to compensate executives extravagantly wouldn't be subsidized through tax deductions for doing so.

Most large companies compensate executives through a combination of cash, restricted stock and options.

In Bermuda, no less than in the United States, it seems that it is customary to pile on the perks when compensating chief executives.

Indeed, some legal experts predict this case will spur a debate here about forcing German companies to say more about how they compensate senior executives.