Shareholders ask for a squeeze in executive remuneration

When it comes to executive remuneration, institutional investors lament lack of transparency, short-term incentives, discretional bonuses and no possibility of compensation if the company faces problems. 

"Lack of transparency on objectives - especially on those related to bonuses - is important for the market," comments Fabio Bianconi, Director of Morrow Sodali, "They are often not disclosed as they are considered sensitive data but they should at least be communicated during the following year. In the last three years, the situation has improved in Italy with an increase in minority shareholders' consensus, also thanks to a better dialogue with majority shareholders which is happening in a direct way and not only through the proxy advisors' firms."