Short Reads

Consultation on additional remuneration restrictions within the financial sector

Consultation on additional remuneration restrictions within the finan

Consultation on additional remuneration restrictions within the financial sector

05.09.2018 NL law

A team from Stibbe has participated in the public consultation launched by the Minister of Finance on additional remuneration restrictions within the financial sector. In their response (in Dutch), the Stibbe team pointed out that there are several legal objections to the proposed measures. Furthermore, the team has raised questions regarding the necessity and legal justification for introducing these additional measures.

On 17 July 2018, the Dutch Minister of Finance published a consultation document regarding potential additional remuneration restrictions within the financial sector. The purpose of these restrictions is to help to restore trust within the financial sector.

As part of the consultation, market participants were invited to provide input on the following three statutory obligations regarding fixed remuneration:

  1. Extension clawback:  partial clawback of fixed pay (above a certain minimum) of the management of a bank or insurer will apply if state aid (staatssteun) is received.

    The purpose of this requirement is to hold the managers more personally accountable when the tax payer has to bail out a failing bank or insurer.
     
  2. Retention period:  management and employees will be obliged to retain shares or components of their fixed pay, the value of which depends on the market value of the firm, for a certain period.

    The purpose of this requirement is to align the interests of the management and the employees with the long-term interests of the firm.
     
  3. Social function:  the remuneration policy of a financial firm must prescribe how the remuneration of management and employees relates to the social function of the firm. In addition, firms must hold themselves publicly accountable for their decision.

    The purpose of this requirement is to ensure that firms, take their social function into account when making remuneration proposals and explain themselves afterwards.

Team

Related news

24.05.2019 NL law
Duurzaamheidsverplichtingen voor de financiële sector: een overzicht

Articles - De komende jaren zal de financiële sector zich actiever dan voorheen moeten bezighouden met het klimaat en de verantwoordelijkheid die de sector draagt voor het milieu en de maatschappij. In rap tempo wordt er wet- en regelgeving ontwikkeld die financiële ondernemingen en aandeelhouders verplichten om aandacht te geven aan deze nieuwe rol die zij vervullen in de verduurzaming van de financiële sector en de maatschappij als geheel. 

Read more

23.05.2019 NL law
De praktische betekenis van de EOCD-Richtlijnen voor het medezeggenschapsrecht

Articles - In juni 1982 verscheen in TVVS nr. 82/6 een artikel van Vino Timmerman over de sinds 1976 geldende OECD-Richtlijnen. Deze zijn laatstelijk aangepast in 2011 en bevatten niet-bindende richtlijnen voor multinationals ten aanzien van onderwerpen zoals mensenrechten, anti-corruptie, mededinging en werkgelegenheid en arbeidsverhoudingen. Over dat laatste onderwerp gaat deze bijdrage.

Read more

24.05.2019 NL law
European regulatory initiatives for online platforms and search engines

Short Reads - As part of the digital economy, the rise of online platforms and search engines raises all kinds of legal questions. For example, do bicycle couriers qualify as employees who are entitled to ordinary labour law protections? Or should they be considered self-employed (see our Stibbe website on this issue)? The rise of online platforms also triggers more general legal questions on the relationship between online platforms and their users. Importantly, the European Union is becoming increasingly active in this field.

Read more

Our website uses functional cookies for the functioning of the website and analytic cookies that enable us to generate aggregated visitor data. We also use other cookies, such as third party tracking cookies - please indicate whether you agree to the use of these other cookies:

Privacy – en cookieverklaring