Press Release: Directors’ pay: Commission sets out further guidance on structure and determination of directors’ remuneration

The European Commission adopted a Recommendation on the regime for the remuneration of directors of listed companies, complementing previous Recommendations 2004/913/EC and 2005/162/EC. An appropriate remuneration policy should ensure pay for performance and stimulate directors to ensure the medium and long term sustainability of the company. The existing Directors' remuneration Recommendation is based on the idea of pay for performance through disclosure of the remuneration policy. The new Recommendation will give further guidance on achieving this by setting out best practices for the design of an appropriate remuneration policy. To this end, it focuses on certain aspects of the structure of directors' remuneration and the process of determining directors´ remuneration, including shareholder supervision. The Commission has also adopted a Recommendation on remuneration policy in the financial services sector.

European Commission: MEMO/09/213: Recommendation on directors' remuneration: Frequently Asked Questions http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/09/213&format=HTML&aged=0&language=EN&guiLanguage=en

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