Clifford Chance
New law on executive compensation, golden parachutes and corporate governance
29 April 2010
The law of 6 April 2010, published on 23 April 2010, provides for a new regime on executive compensation in listed companies. The law focuses on transparency of compensation policies and structures, by way of disclosures requirements and the establishment of a remuneration committee. Part of the variable remuneration must be subject to objective performance tests and the payment must be deferred. Golden parachutes are subject to a cap (unless shareholders decide otherwise).
The law is applicable to all Belgian companies whose securities are admitted to trading on a European regulated market.
