Remuneration trends across Europe

In the view of European Parliament and the Council, a company’s remuneration policy should contribute to the business strategy, long-term interests and sustainability of the company, and should not be linked entirely or mainly to short-term objectives.

Under the EU’s revised Shareholder Rights Directive, directors’ performance should be assessed using both financial and non-financial performance criteria, including, where appropriate, environmental, social and governance factors. It will be essential to assess the remuneration and performance of directors not only annually, but also over an appropriate period of time to enable shareholders, potential investors and stakeholders to properly assess whether the remuneration rewards long-term performance and to measure the mid-to-long-term evolution of directors’ performance and remuneration, in relation to company performance, commented Fabio Bianconi, Director Morrow Sodali, on a piece on Ethical Boardroom.

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