Can the revision of the Shareholders’ Rights Directive ensure better decision-making in companies by focusing on long-term involvement of shareholders? ‘Say on pay’ rules and the focus on social and environmental risks are steps in the right direction.
New remuneration requirements have an effect on shareholders, as they hinder the use of remuneration to align the interests of executives with their own interests. This ponders the question whether he who pays the piper, still calls the tune?
A bonus cap for bankers is introduced in CRDIV. However, the UK government fears that this rule, amongst others, will undermine responsibility in the banking sector rather than promote it. The government has therefore lodged a legal challenge with the ECJ.