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Revised remuneration policies will be on the agenda for many companies in 2020

18 January 2020 Articles

Ahead of the upcoming AGM season, companies will face new regulatory requirements due to the entry into force of a new EU directive and the new “say on pay” model whereby a firm's shareholders have the right to vote on the remuneration of executives.

From this year, for listed companies, the vote on the remuneration policy will take effect and be advisory rather than binding. Therefore, increased transparency is expected on compensation.

Fabio Bianconi, in an article published by Milano Finanza, argued that, based on the new regulatory framework, "the remuneration policy will represent a sort of summary document on the performance of a company, as well as a check to assess alignment among incentive scheme and business targets. Institutional Investor will increasingly take into account executive remuneration in their investment decisions."

Read the full article here.

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