Corporate Governance: Commission recommendation on Directors' Renumeration
06 October 2004
The Commission adopted a Recommendation on directorsf remuneration that should ensure listed companies disclose their policy on directorsf remuneration and tell shareholders how much individual directors are earning and in what form, and ensure shareholders are given adequate control over these matters and over share-based remuneration schemes.
The non- binding Recommendation includes four areas:
Remuneration Policy: all listed companies should release a statement of their policy on directorsf remuneration for the following year.
Shareholders meeting: remuneration policy for directors should be on the agenda of the shareholdersf general meeting.
Disclosure of the remuneration of individual directors: this should also include detailed information about the remuneration and/or emoluments of individual directors.
Approval of share and share option schemes.
Press release
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