Kevin talked about European guidelines to limit golden parachutes, in the mean while, Belgium is thinking about strict prohibition of these parachutes. Although many politicians have already announced they want a total prohibition of the famous golden parachutes, Belgian Parliament has not yet made any legislation what so ever. Are they afraid the financial top and other influential managers will turn against them?
Even though a new Corporate Governance Code for listed companies, which forces to include in every new contract with top managers the decision on severance pay, was presented, the golden parachutes still exist due to the lack of a new legislation. The code says that top managers have to specify that severance pay awarded when there’s an early termination of the contract should not be more than a twelve months’ remuneration.
The difference between the Corporate Governance Code and legislation is that the CGC is not obligatory; it just provides guidelines for listed companies what means the impact isn’t that big. Maybe if the European Union would define its guidelines, Belgium can step it up as well! (hg.org)
Corien Staels
Geen opmerkingen:
Een reactie posten