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The effectiveness of some existing provisions on executive pay warrant further examination and possibly policy at the national level, the Council will agree on its forthcoming meeting. “National authorities have a role to play in helping to define an appropriate regulatory framework and in encouraging good practices and voluntary self regulation”, a draft paper says.
Performance should be properly and comprehensibly reflected in executives' pay, including leaving pay, which should be appropriately linked to the contribution of the executive to the company's success. Also, performance criteria should provide the right incentives, and potential conflicts of interest for executives conducting mergers and acquisitions should be prevented.
Document attached below