Public consultation remuneration measures financial sector

Public consultation remuneration measures financial sector

On 17 July, the Ministry of Finance started a public consultation (link, in Dutch) on statutory measures with regard to fixed remuneration.

The government is looking at a possible tightening of remuneration rules in the financial sector and examines which additional measures would be desirable. Three legal measures regarding fixed remuneration are under consideration:

(i) Introduction of the legal obligation to recover part of the fixed remuneration (above a certain minimum) of directors when state aid is given to a bank (or insurer).

(ii) Introduction of the legal obligation that elements of a fixed remuneration whose value depends on the market value of the company, such as shares, must be retained by directors and employees for a number of years to be specified.

(iii) Introduction of the legal requirement that the remuneration policy of financial undertakings prescribes how the remuneration of directors and employees relate to the public function of the company.

You can react to the consultation until 31 August 2018.