The Netherlands' Monitoring Commission Corporate Governance said it believes the self-regulation of managing boards' salaries by Dutch companies is a more effective form of control than government regulation.
In its third annual report to the Dutch government, the committee said the introduction of statutory or tax controls to limit the pay levels of top executives could 'have an adverse effect on the business development climate in the Netherlands'.
The report also recommended that the position of supervisory boards is strengthened, allowing them to 'have a stronger grip on the remuneration actually awarded'.
The committee called for remuneration contracts to be simplified and for variable pay-outs, such as bonuses, to be linked to a maximum percentage of the recipients fixed salary.
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