The European Commission has published two reports on Member States’ application of the EU’s recommendations on company directors’ pay and independence.
The report on directors’ remuneration indicates that publication of remuneration details is now more widespread. There is still some reluctance to involve shareholders in decisions over remuneration policy. Most Member States have, however, recommended or obliged shareholder approval of sharebased incentive schemes.
The report on directors’ independence indicates a clear trend in recent years towards the improvement of corporate governance standards. However, differences in the definition of “independence” means that standards are uneven across Member States. One area which could do with further improvement is promotion of the presence and role of independent non-executive or supervisory directors.
Asignificant number of Member States do not recommend the presence of independent directors on all board committees.