Eumedion recommendations to make executive remuneration policies more stakeholder-oriented
An external, 'peer' group of companies should no longer be leading for the level and structure of executive remuneration. Supervisory boards must attach equal importance to the pay ratios within the company, the identity, the purpose and the values of the company and the expectations of the relevant stakeholders, including shareholders, employees, customers and the wider society. Eumedion has embedded this principle in the today's updated principles for a responsible executive remuneration policy of Dutch listed companiess.
The updated executive remuneration principles will be used by the Eumedion participants in assessing proposals to adjust the remuneration policy of the Dutch listed companies. In its endeavor to make the remuneration policy for listed companies more 'stakeholder-oriented', Eumedion further recommends that substantial increases in the fixed salary of executives (which exceed the increases in the fixed salaries of 'ordinary employees') be approved by the shareholders meeting. Eumedion also recommends the companies to extend the scope of the 'claw-back' provisons, so that bonuses can now also be recovered in the case of material breaches of the internal code of conduct.
Click here for an overview of the (explanations of the) amendments to the Eumedion executive remuneration guidelines
Click here for a clean version of the updated Eumedion executive remuneration guidelines