Company Law, Modernisation of Company Law and Enhancement of Corporate Governance, Remuneration Policies

Remuneration Policies


New Initiatives in Response to the Financial Crisis

Commission adopts technical standards for the identification of material risk takers subject to the rules on remuneration in the Capital Requirement Directive – 04.03.2014

The Commission has adopted Regulatory Technical Standards on criteria to identify categories of staff whose professional activities have a material impact on an institution's risk profile. These standards supplement the requirements of the Capital Requirements Directive (CRD IV) and will ensure that the CRD rules on remuneration are applied consistently across the EU.

See also:

Commission reports on the application by Member States of Recommendations on remuneration issues – 02.06.2010

The Commission reports one year after the adoption of Recommendation 2009/384/EC and of Recommendation 2009/385/EC on measures taken by Member States to promote the application of these Recommendations. The two reports are complemented by two staff working documents which provide detailed analysis of the measures taken by Member States:

  • Press release (IP/10/656)
  • FAQs
  • Press conference
  • Commission report on the application of Recommendation 2009/384/EC PDF - 215 KBDeutschEnglishFrançais
  • Commission staff working document PDF - 215 KBEnglish
  • Commission report on the application of Recommendation 2009/385/EC PDF - 215 KBDeutschEnglishFrançais
  • Commission staff working document PDF - 215 KBEnglish

Amendments to the Capital Requirements Directive – 13.07.2009

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 PDFEnglish
  • Citizens' summary PDFбългарскиČeštinaDanskDeutschEesti keelελληνικάEspañolEnglishFrançaisItalianoLatviešu valodaLietuviµ kalbaMagyarMaltiNederlandsPolskiPortuguêsRomânăSlovenskySlovenščinaSuomiSvenska
  • Impact assessment
    • Executive summary PDF - 215 KBEnglish
    • Full text PDF - 215 KBEnglish

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.
PDFбългарскиčeštinadanskdeutscheesti keelελληνικάenglishespañolfrançaisitalianolatviešu valodalietuvių kalbamagyarmaltinederlandspolskiportuguêsromânăslovenčinaslovenščinasuomisvenska

Recommendations

29.04.2009 Financial services sector pay: Commission sets out principles on remuneration of risk-taking staff in financial institutions
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  Frequently asked questions
  Commission Recommendation of 29.04.2009 PDFбългарскиčeštinadanskdeutscheesti keelελληνικάenglishespañolfrançaisitalianolatviešu valodalietuvių kalbamagyarmaltinederlandspolskiportuguêsromânăslovenčinaslovenščinasuomisvenska
29.04.2009 Directors’ pay – Commission sets out further guidance on structure and determination of directors’ remuneration
  Press Release bulgarskiČeštinaDanskDeutschEesti keele???????EnglishEspañolFrançaisItalianoLatviešu valodaLietuviµ kalbaMagyarMaltiNederlandsPolskiPortuguêsRomânăSlovencinaSlovenšcinaSuomiSvenska
  Frequently asked questions
  Commission Recommendation of 29.04.2009 PDFбългарскиčeštinadanskdeutscheesti keelελληνικάenglishespañolfrançaisitalianolatviešu valodalietuvių kalbamagyarmaltinederlandspolskiportuguêsromânăslovenčinaslovenščinasuomisvenska
  Impact Assessment PDF
  Executive Summary of the Impact Assessment PDFбългарскиčeštinadanskdeutscheesti keelελληνικάenglishespañolfrançaisitalianolatviešu valodalietuvių kalbamagyarmaltinederlandspolskiportuguêsromânăslovenčinaslovenščinasuomisvenska

 


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 PDF 39 KBEnglish

Documents and Presentations:

  • European Corporate Governance Forum Statement on Executive Remuneration PDF 39 KBEnglish
  • Presentation “Key Statistics and shareholders scrutiny” by Mr Caprasse PDF 39 KBEnglish
  • Presentation “Fixing Directors’ Remuneration in Europe. Governance, Regulation and Disclosure” by Prof Ferrarini PDF 39 KBEnglish
  • Closing remarks by David Wright PDF 39 KBEnglish
  • Video recording

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

20.07.2007

 

Commission publishes report on how Member States follow the recommendation:

Report PDF 39 KBEnglish

Press release

Recommendation

06.10.2004

 

Directors’ pay – Commission sets out guidance on disclosure and shareholder control

Press Release

Frequently asked questions

Commission Recommendation of 14.12.2004
PDFČeštinaDanskDeutschEesti keelελληνικάEnglishEspañolFrançaisItalianoLatviešu valodaLietuviµ kalbaMagyarNederlandsPolskiPortuguêsSlovenčinaSlovenščinaSuomiSvenska

Consultation

15.06.2004 Commission announces results of consultation on directors’ remuneration PDF 50-54 KBDeutschEnglishFrançais
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.

PDF 50-54 KBDeutschEnglishFrançais

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.

PDF 39 KBEnglish

Last update: 11.07.2014