FESE response to Commission Consultation on Remuneration of Directors

15 April 2004

The Federation of European Securities Exchanges (FESE) published its response to the to Commission Consultation on the Remuneration of Directors. FESE argues that with regard to successful market-driven developments towards better corporate governance in many member states, a legislative or regulatory approach could be avoided.

The Federation is concerned about the choice of a “comply-or-explain” approach for some elements of the remuneration policy report. Requesting explanations and motives/justifications may be seen as contrasting with the assertion that “the recommendation should not deal with the issue of amount and structure of the directors’ remuneration”.