EU in move on directors’ salaries

THE EU is planning to give shareholders in public companies a greater role in deciding the salaries of directors.

The European Commission yesterday launched a consultation paper to seek the views of shareholders on how to regulate directors’ remuneration. The move comes in the wake of multi-million pay awards to company bosses despite poor share price and profits performances.

“We need to foster a regulatory framework which empowers shareholders and encourages companies to get their policies on directors’ remuneration right, without meddling in commercial decisions on individual remuneration,” EU internal markets commissioner Frits Bolkenstein said.