The UK government will this week release a consultation paper on executive compensation, a move which is expected to reignite the debate over large payouts to under-performing company executives.
Entitled 'Reward for Failure', the government paper is said to contain proposals for legislation to restrict directors' contracts and notice periods, tighten performance-related pay, and ensure that any pay-outs to departing executives are not received in one lump sum.
The government is also planning to invite views on whether legislation could be introduced which would force company boards to take underperformance into account when calculating payoffs, without leaving them liable to legal action from the executive in question.
This follows several high profile shareholder revolts against excessive executive compensation packages, such as the $35 million 'golden parachute' deal requested by GlaxoSmithKline chief executive, Jean-Pierre Garnier, if he was obliged to leave his position with less than two years' notice.
.
Network Tweets
Network BlogsContent
provided by
|
Archive | Resources | Partners | Site Map | Links | Newsletter Archive | Contact | RSS Feeds | About | Syndication | Advertising & Marketing | Recruitment | Terms & Conditions | Privacy & Cookies
Copyright © 2012 - All Rights Reserved - Tax-News.com
IMPORTANT NOTICE: Tax-News.com has taken reasonable care in sourcing and presenting the information contained on this site, but accepts no responsibility for any financial or other loss or damage that may result from its use. In particular, users of the site are advised to take appropriate professional advice before committing themselves to involvement in offshore jurisdictions, offshore trusts or offshore investments.
Write a comment