The European Commission has summarized the results of its recent consultation on 'Fostering an Appropriate Regime for the Remuneration of Directors'. The consultation document proposed a set of measures on the disclosure of remuneration policy and of individual remuneration, as well as shareholder approval of share-based remuneration schemes for directors.
The results of the consultation show support for proposals that increase transparency in directors' remuneration and boost the role of shareholders in approving share-based remuneration schemes (eg, share options) for directors. However, concerns were expressed over the commission's intention to invite EU member states to implement the requirements of the future recommendation through regulatory measures.
The commission intends to announce its final recommendation on directors' remuneration in Autumn 2004 in light of the consultation results.
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