Brussels, 16/06/2004 (Agence Europe) - Should the salaries of company directors be made more transparent? "Yes, but …" - the results of the consultation launched by the Commission on directors' earnings are somewhat mitigated. Most are in favour of the idea of making salary policy public when the companies are quoted on the stock exchange. There is also a majority that supports submitting to shareholders the systems based on share acquisition (stock options, etc.).
On the other hand, codes of conduct and voluntary agreements have more success than a proposal calling on Member States to act through regulatory means. The Commission's report on consultation notes that the experience in Member States that encouraged greater transparency through a voluntary approach has not worked as companies believe they would be at a competitive disadvantage if they revealed information that their rivals do not reveal. Neither is there support for having company director pay policy approved by the annual shareholders' assembly.
Companies and providers of professional services, as well as institutional investors, provided most of the 101 responses to the Commission, a long way ahead of the trade unions and shareholder representatives. Germany and the United Kingdom account for over half of the respondents, from 14 countries of which 12 are European.
In the autumn the Commission is expected to present recommendations on the basis of the results of this consultation, available on the internet (http: //http://www.europa.eu.int/comm/market_market/company/directors-remun/index_en.htm )