The European Commission this week approved a corporate governance package, which for the first time includes a “say on pay” provision that strengthens shareholders’ weight on executive compensation throughout the 28-nation bloc.
The commission’s proposal would affect about 10,000 companies listed on European stock exchanges. The package consists of revisions to the Shareholders Rights Directive, increased reporting requirements for corporate governance, and a new directive to allow small and medium-sized enterprises (SMEs) to set up cross-border companies more easily.
