(May 7, 2015)

On May 7, 2015 a news release titled: ‘Give shareholders more say on directors’ pay, urge Legal Affairs Committee MEPs’ was published on the website of the European Parliament. According to the news release a draft law empowering shareholders to vote on directors’ remuneration, so as to ensure proper transparency and tie their pay more closely to their performance, was backed by Legal Affairs Committee MEPs on May 7, 2015.

According to the news release the draft law aims to improve transparency and foster shareholders’ long-run commitment to companies, which should in turn improve their competitiveness and sustainability. The news release furthermore states that the committee approved the amended rules by 13 votes to 10.

The news release is divided in the following paragraphs:

·        Shareholder say on director’s pay;

·        Country-by-country tax reporting requirement;

·        Additional voting rights to reward loyalty; and

·        Next steps

The text of the paragraph “Country-by-country tax reporting requirement” states the following: 

“To improve tax transparency, MEPs inserted a requirement for “large undertakings and public-interest entities” to publish information, country by country, on profit or loss before tax, taxes on profit or loss, and public subsidies received. Companies with more than 500 employees and a balance sheet total of €86 million or a net turnover of €100 million should also disclose information on tax rulings, say MEPs.”

The news release concludes by stating that the European Parliament’s Committee on Legal Affairs approved a mandate to start informal talks with the Council by 13 votes to 10, with a view to reaching a first-reading agreement.

Click here to be forwarded to the text of the news release as published on the website of the European parliament.

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