There was widespread support for the Commission's proposal to raise transparency in remuneration by disclosing remuneration policy for the next financial year and by unveiling the remuneration of individual directors in the preceding financial year. Most respondents also agreed with the Commissions plan to boost shareholders' role in approving share-based remuneration schemes, for example share options, for directors. Concerns were, however, expressed over the Commission's intention to invite Member States to implement the requirements of the future Recommendation through regulatory measures. Doubts were also expressed as to the need to involve the Annual General Meeting in discussing and approving directors' remuneration policy. (b) Next steps The Commission will draft a Recommendation on fostering an appropriate regime for the remuneration of directors, taking due account of the comments expressed in the consultation. The aim is to adopt the Recommendation in autumn 2004. (c) Background The Commission's Action Plan to modernise company law and enhance corporate governance in the EU, announced in May 2003 (see IP/03/716 and MEMO/03/112) contains a set of initiatives aimed at strengthening shareholders' rights, reinforcing protection for employees and creditors, increasing the efficiency and competitiveness of European business and boosting confidence on capital markets. The Action Plan recognises the need for shareholders to be able to appreciate fully the relationship between the past and future performance of companies and directors' pay and to make decisions on aspects of remuneration linked to the share price such as share options for directors. Public consultation on the Plan as a whole, which ended in mid-September 2003, showed a strong consensus behind the main measures within it. The Commission is now committed to further open consultation on each of those key measures and the consultation exercise on directors' remuneration was the first of several arising from the Action Plan. For the full text of the report, please see: 1.12 Parliamentary Committee reports on the CLERP 9 Bill The Corporate Law Economic Reform Program (Audit Reform and Corporate Disclosure) Bill, which is currently before Parliament, represents one of the most significant reforms to Australia’s corporate regulation in many years. The Bill has been examined by the Parliamentary Joint Committee on Corporations and Financial Services. The Committee has released two reports on the Bill. These were published on 15 June 2004 and 4 June 2004.
There was widespread support for the Commission's proposal to raise transparency in remuneration by disclosing remuneration policy for the next financial year and by unveiling the remuneration of individual directors in the preceding financial year. Most respondents also agreed with the Commissions plan to boost shareholders' role in approving share-based remuneration schemes, for example share options, for directors. Concerns were, however, expressed over the Commission's intention to invite Member States to implement the requirements of the future Recommendation through regulatory measures. Doubts were also expressed as to the need to involve the Annual General Meeting in discussing and approving directors' remuneration policy. (b) Next steps The Commission will draft a Recommendation on fostering an appropriate regime for the remuneration of directors, taking due account of the comments expressed in the consultation. The aim is to adopt the Recommendation in autumn 2004. (c) Background The Commission's Action Plan to modernise company law and enhance corporate governance in the EU, announced in May 2003 (see IP/03/716 and MEMO/03/112) contains a set of initiatives aimed at strengthening shareholders' rights, reinforcing protection for employees and creditors, increasing the efficiency and competitiveness of European business and boosting confidence on capital markets. The Action Plan recognises the need for shareholders to be able to appreciate fully the relationship between the past and future performance of companies and directors' pay and to make decisions on aspects of remuneration linked to the share price such as share options for directors. Public consultation on the Plan as a whole, which ended in mid-September 2003, showed a strong consensus behind the main measures within it. The Commission is now committed to further open consultation on each of those key measures and the consultation exercise on directors' remuneration was the first of several arising from the Action Plan. For the full text of the report, please see: 1.12 Parliamentary Committee reports on the CLERP 9 Bill The Corporate Law Economic Reform Program (Audit Reform and Corporate Disclosure) Bill, which is currently before Parliament, represents one of the most significant reforms to Australia’s corporate regulation in many years. The Bill has been examined by the Parliamentary Joint Committee on Corporations and Financial Services. The Committee has released two reports on the Bill. These were published on 15 June 2004 and 4 June 2004.
CORPORATE-LAW-ELECTRONIC-BULLETIN-June-2004.docx