The Belgian Government plans to introduce legislation that will restrict payments to departing executives of listed companies. The changes are being introduced in response to a public outcry over the level of recent payments made to senior executives.
On termination executives will be entitled to a maximum payment of 18 months’ salary. These provisions are proving controversial as they are intended to override existing contractual rights which may be more generous.
The new legislation, if enacted, will also require listed companies to set up remuneration committees for the purpose of fixing the remuneration packages of directors. Information about pay and benefits will then have to be disclosed in an annual report, together with details on how variable pay elements have been calculated.