European guidelines to end golden parachutes?

For all the support the governments of the European Union have given to the companies who suffered from the economic recession, the European commission wants to implement restrictions on the remuneration of CEO’s.

60 percent of the 27 EU countries demand disclosure of bonus policy and two-thirds would like to have more details about directors’ pay. With these instructions the EU would like to limit managers’ golden parachutes and force companies to take drastic measurements when the business runs into serious problems. The guidelines would recommend that bonuses for CEO’s are restricted to a specified percentage of overall remunerations to keep the managers from running away with the big money while the business is on the edge of bankruptcy.

So the governments are trying to protect the tax payer’s money to go directly to the pockets of the top directors of the big corporations, but nothing is quite specific so far.

Kevin Rokegem

The Guardian