These are new guidelines but the Commissioner will propose they be enshrined in law soon.
The guidelines apply to all financial undertakings having their registered office or head office in an EU state.
The main elements of the bankers' guidelines include:
-- payment of the major part of the bonus should be deferred to take into account risks linked to the underlying performance through the business cycle;
-- performance measurement criteria should privilege longer-term performance of a company;
-- financial institutions should be able to claim back already paid bonuses where data has been proven to be manifestly misstated;
-- a company's board should have responsibility for oversight of remuneration policy throughout the bank;
-- board members and other staff involved in the design and operation of remuneration policies should be independent;
-- remuneration policy should be adequately disclosed to stakeholders;
-- supervisors should ensure that financial institutions apply the principles on sound remuneration.
-- severance pay in cases of failure ot be banned
-- a minimum vesting period of at least three years on stock options and shares with some retained until employment ends.
-- Companies should also be allowed to reclaim the variable component of a director's pay
-- non-executive directors should not receive share options as part of their remuneration to avoid conflicts of interest.
1 comment:
asfdasfd said :
looks reasonable to me. seems like they are simply enshrining good business basics into law.
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