Chapter 13: The European Approach to Regulation of Director’s Remuneration

During the last 10 years the European Commission has outlined a framework for community action to improve company laws and corporate governance practices in the European Union, to enhance, as a consequence, the real economy, promoting efficiency and competitiveness of European companies worldwide as well as strengthening the shareholders’ rights and third parties protection. This review process, which started in 2003 with the “Action Plan for the Company Law Modernization and Corporate Governance Enhancing” has accelerated in recent years. It was the result of the global economic and financial crisis and of the careful consideration on the factors which contributed to its occurrence which followed.