SP.A in crackdown against executive salaries

3rd May 2006, Comments 0 comments

3 May 2006, BRUSSELS — The Socialist SP.A has urged its Public Enterprises State Secretary Bruno Tuybens to draw up a plan aimed at cutting back the high salaries and bonuses paid to company executives in both the private and public sectors.

3 May 2006

BRUSSELS — The Socialist SP.A has urged its Public Enterprises State Secretary Bruno Tuybens to draw up a plan aimed at cutting back the high salaries and bonuses paid to company executives in both the private and public sectors.

The SP.A state secretary will call in the assistance of industry experts to help draw up the proposal, newspaper 'De Standaard' reported on Wednesday.

SP.A chairman John Vande Lanotte said the Socialists want to take the plan to the federal elections in 2007 as part of its policy base.

Vande Lanotte primarily raised concern about the large payouts company executives receive if they leave the firm. He said the problem occurred in both public and private sector companies.

In the Netherlands, a top manager who is sacked receives a maximum of one year salary. In exceptional cases, this can amount to two years, the SP.A leader said.

In Belgium, Vande Lanotte said redundancy payments are "excessive" and the Tabaksblatt code for good management in the Netherlands is much stricter than the Lippens code used in Belgium.

The SP.A urged for the introduction of a maximum one-year salary payout for redundancies. Vande Lanotte also hopes the theme of social responsibility in business management will form the centre of a new political debate.

Additionally, the SP.A is also demanding greater clarity around the criteria for bonuses.

The party believes it is difficult to accept the fact that wage moderation is asked of employees at the same time, according to Vande Lanotte, that "excessive salaries of CEOs or very large profits of banks are publicised".

[Copyright Expatica News 2006]

Subject: Belgian news

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