EU laws on directors’ pay criticised

Directors’ pay should not be subject to EU legislative restriction, according to the Chartered Institute of Personnel and Development (CIPD).

CIPD believes the EU should not legislate to impose a Europe-wide “one-size-fits-all” restriction on directors’ remuneration.

Responding to the consultation document entitled Fostering an appropriate regime for the remuneration of directors, the CIPD stresses that national governments should be left to put in place a minimum-legislative framework to set boundaries and prevent abuse.