Clifford Chance
Belgian bill on executive compensation, golden parachutes and corporate governance
26 January 2010
The Belgian government has submitted to Parliament a bill in respect of executive compensation in listed companies. The bill mainly focuses on transparency of compensation policies and structures, by way of disclosures requirements. With regard to bonuses and variable remuneration, there will be a requirement to defer part of the payment and to apply objective performance tests. Golden parachutes are not subject to an absolute cap, but shareholder approval will be necessary if the company intends to offer more than what is recommended by the applicable corporate governance code.
The bill affects all Belgian companies whose securities are admitted to trading on a European regulated market.
