More shareholder say on directors’ pay and new corporate tax disclosure rules
Shareholders would be able to vote at least every three years on a listed company’s remuneration policy for directors, under a draft law to be debated on Tuesday and voted on Wednesday. Legal affairs MEPs also inserted a requirement for large companies and public interest entities, such as banks and insurance firms, to disclose, country by country, profits made, taxes paid and public subsidies received.
The draft law, approved by the Legal Affairs Committee in a close vote, aims to increase transparency and foster shareholders’ long-run commitment to companies, by making it easier for them to exercise their rights.
Note to editors
Parliament is likely to vote on its first reading position on Wednesday. But MEPs might also decide not to close the first reading, and instead to enter into informal talks with the Council of Ministers to seek agreement on the final version of the legislation.
According to the European Commission, only 13 EU member states currently give shareholders “a say on pay”, either through a vote on directors’ remuneration policy and/or a report. Only 15 require disclosure of the remuneration policy and 11 require disclosure of individual directors’ pay.
Procedure: Co-decision (Ordinary Legislative Procedure), first reading
Debate: Tuesday, 9 June
Vote: Wednesday, 10 June
Press conference: Wednesday, 10 June, at 15.00
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