German bill seeks controls on executive pay

12th March 2009, Comments 0 comments

The bill would double to four years a delay imposed on executives before they could exercise stock options.

Frankfurt -- The German cabinet approved a draft law Wednesday that would tighten the framework on salaries paid to top business leaders.

The bill would double to four years a delay imposed on executives before they could exercise stock options.

Supervisory board members, who oversee operations at German companies, could also be liable for damages if they approved excessively high pay to directors.

In addition, the bill would vary the time during which bonuses were paid, to avoid cases where for example all were settled on December 31, which makes them dependent on stock market prices on a given day.

"It is not short-term stock market success, but the company's long-term evolution that should be decisive for remuneration," a government statement said.

AFP/Expatica

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