By Anna Mclauchlin - 23rd February 2004
Brussels has asked for industry's views on pay and perks for 'fat cat' company directors.
The move follows a series of boardroom rows over large salary handouts to bosses.
But the responses will only be used to make a non-binding recommendation to EU capitals.
Between now and April 12 interested parties can comment on whether and to what extent directors' pay should be disclosed to shareholders as part of an overall shake up of EU corporate governance law.
The European Commission will issue its tips for further action to national governments in September taking these views into account.
Though it may ask member states to adopt national law to ensure all companies comply with its recommendations on directors' pay however, Brussels will not pass any legislation at EU level for the time being.
"I believe we need to foster a regulatory framework which empowers shareholders and encourages companies to get their policies on directors' remuneration right, without meddling in commercial decisions on individual renumeration," said Internal market chief Frits Bolkestein.
"This consultation is a step towards developing a commission recommendation aimed at achieving that balance."
To see the consultation paper, click on the Further Reading link, right.
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