After formulation of the problem and the objectives of the elaboration in the introduction, the legal and economic basis for management remuneration is presented in the first chapter. In this context, the principle-agent theory is discussed as the economic cause for the necessity of individual contract arrangements. Subsequently, the legal framework as well as the fundamentals and effects of Corporate Governance are discussed. In the following, this elaboration is about the value based management in context of earnings management, the underlying concept, non-monetary variables as well as the value-added and profitability indicators with regard to measuring the sustainability of annual results. Based on this, remuneration models are presented and the fundamentals of the variable component are examined. In particular, budgets and share-oriented compensation components play an important role regarding management compensation. These investigations are always carried out in connection with value-oriented management. Finally, the possibilities for balance sheet policy measures are discussed, related to earnings management. It defines what is meant by the term "balance sheet policy" and what opportunities a manager of a company can make to shape the outcome of an economic period in order to reach the goal of agreed targets in possible pay agreements.In summary, the smoothing effects of balance sheet policy are emphasized, as well as their effects on the achievement of the objectives and the formulation of the target for the basis of assessment of executive board remuneration. Likewise, the time horizon of the contract parties is defined as a decisive criterion for optimal contracts.