Rapporteur El Khadraoui (S&D/BE) called for action on compensation practices. The amendments discussed included greater proportionality, meaning not just looking at salary but also at pension rights as part of the remuneration package and also to look at remuneration practices of listed companies.
Eighty amendments has been submitted to the report, Rapporteur Saïd El Khadraoui (S&D/BE) said, and he will work with the other groups in order to achieve workable compromises.
He called for actions as dangerous behaviors could be created by compensation practices. Together with Arlene McCarthy (S&D/UK , rapporteur for CRD III, he believes that there is a need to tackle this issue. It comes on a very timely moment; as the EC will be publishing a report on the measures taken by member states on remuneration issues.
He presented the following issues as the key ones addressed by the amendments:
· Greater proportionality, not just looking at salary but also at pension rights as part of the remuneration package
· There is a need to established a procedure on remuneration
· Listed companies should also be subject to name and shame procedure
· The ratio on the variable and fixed component of the pay should also need to be considerate and what percentage is variable.
· The link between remuneration and long term returns, it is something that needs to be defended in the report too.
Vicky Ford (UK/ECR) stressed national supervisors should be given some powers to also control remuneration. Corporate governance and shareholders responsibility needs to be look at, and also the link between risk taking and remuneration should be correctly addressed.
Next steps:
22 June - vote on ECON
July plenary - vote
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