European unions urge EU to curb executive rewards

first_imgRelated posts:No related photos. European unions urge EU to curb executive rewardsOn 3 Jun 2003 in Personnel Today Previous Article Next Article Acoalition of European union groups, including the TUC, is urging the EuropeanCommission and the UK, German and Dutch governments to place curbs on executivepay.TheTUC claims that company boards that award themselves large pay rises withoutany clear link to performance are creating a crisis of confidence amongcustomers, staff and shareholders.Theunion groups are calling for full details of the reward packages of everymember of an executive board to be published in annual business reports.Theyare also calling for company supervisory boards to discuss and decide on thestructure and amount of all remuneration parts that are fixed and variable,such as retirement schemes. TheTUC claims these decisions can only be prepared by relevant subcommittees oncestaff representatives are involved.Underthe proposals, members of supervisory councils would have the option toestablish a limitation on stock options, which are sometimes part of theremuneration package.TUCgeneral secretary Brendan Barber said: “There is a concern that we are indanger of seeing American-style practices applied across many businesses. Wemust resist the American way.” Comments are closed. last_img

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