Remuneration Policies

• New Initiatives in Response to the Financial Crisis
• Other Documents on Directors´ Remuneration

New Initiatives in Response to the Financial Crisis

Amendments to the Capital Requirements Directive

The Commission has adopted a proposal to further amend the CRD. The proposed amendments will address inter alia remuneration policies of credit institutions.

• Press release (IP/09/1120)
• FAQs (MEMO/09/335)
• Commission proposal
• Citizens' summary
• Impact assessment
  • Executive summary
  • Full text

Communication and Recommendations on Remuneration issues

The importance of the current financial crisis raised serious questions about the adequacy of the existing corporate governance practices (including on the setting of compensation policies) in financial institutions. Taking into account the lessons of the crisis, the Commission has adopted a Communication and two complementary recommendations on remuneration policies.

Communication

Communication accompanying Commission Recommendation complementing Recommendations 2004/913/EC and 2005/162/EC as regards the regime for the remuneration of directors of listed companies and Commission Recommendation on remuneration policies in the financial services sector.

Recommendations

29.04.2009	Financial services sector pay: Commission sets out principles on remuneration of risk-taking staff in financial institutions
	Press Release
	Frequently asked questions
	Commission Recommendation of 29.04.2009
29.04.2009	Directors’ pay – Commission sets out further guidance on structure and determination of directors’ remuneration
	Press Release
	Frequently asked questions
	Commission Recommendation of 29.04.2009
	Impact Assessment
	Executive Summary of the Impact Assessment

Public Consultation

The Commission services request feedback regarding possible changes to the Capital Requirements Directive (CRD) with regard to remuneration policies. Comments are requested by May 6, 2009.

• Public Consultation regarding possible changes to the Capital Requirements Directive

Other Documents on Directors´ Remuneration

Roundtable on Directors´ Remuneration

The European Commission services (DG Internal market & Services) organised a Roundtable discussion on Directors´ remuneration (including in the financial services sector) on 23 March 2009 in Brussels, in order to consult the relevant stakeholders on this file. The event featured four panels in which different aspects of the issue were discussed: the socio-economic aspects of directors´ remuneration, the realisation and structure of a directors´ remuneration package, the possible content of new EU provisions addressing directors´ remuneration and strengthening the application of the existing and future provisions on directors´ remuneration. Discussions will take place in English.

• Programme

Documents and Presentations:

• European Corporate Governance Forum Statement on Executive Remuneration
• Presentation “Key Statistics and shareholders scrutiny” by Mr Caprasse
• Presentation “Fixing Directors’ Remuneration in Europe. Governance, Regulation and Disclosure” by Prof Ferrarini
• Closing remarks by David Wright
• Video recording
  • Panel 1
  • Panel 2
  • Panel 3
  • Panel 4

Recommendation on Directors’ Pay of December 2004

The Commission Action Plan on modernising company law and enhancing corporate governance in the European Union recognised the need for shareholders to be able to appreciate fully the relationship between the performance of the company and the level of remuneration of directors, both ex ante and ex post, and to make decisions on the remuneration items linked to the share price. The Commission recommended the adoption in the short term of a Commission recommendation which should promote the swift application of an appropriate regulatory regime for directors’ remuneration.

Application of the Recommendation by Member States

Recommendation

Consultation

15.06.2004	Commission announces results of consultation on directors’ remuneration
23.02.2004	Commission consults on directors’ remuneration
	Comments on this note had to be received by 12 April 2004 (consultation closed). Personal data (of natural persons) collected with the comments will be published on the Commission's website unless specifically requested otherwise.

Working document

23.07.2004

DG Internal Market Services’ working document on fostering an appropriate regime for directors’ remuneration In the context of the preparation of the forthcoming Recommendation on fostering an appropriate regime for directors' remuneration, the services of DG Internal Market have developed the following working document. This document was prepared on the basis of discussions with Member States experts and of the comments received in the public consultation organised in Spring. This document from DG Internal Market services is a working document for comments and is without prejudice to any final decision that might be taken by the Commission. This document is therefore informal and not definitive. In particular, the Commission services draw the attention to the definition of the scope currently envisaged for the forthcoming Recommendation. The Commission envisaged earlier that the measures to be adopted by Member States pursuant to the forthcoming Recommendation should cover companies listed in the EU and incorporated in one of the Member Sates. In line with the suggestions received recently from some organisations, it is now envisaged that the measures to be adopted by Member States pursuant to the Recommendation would cover all companies listed in the EU, whether or not they are incorporated in one of the EU Member States. Any technical drafting comments should be sent to the Commission, as soon as possible. Adoption of the forthcoming Recommendation is currently scheduled for September 2004.