The European Commissioner responsible for internal market, Charlie Mc Creevy, presented, on April 29, a recommendation defining guidelines for the development and follow-up of wage policies in finance firms. The recommendation follows a communication the Commission presented to heads of States and governments during the European Council held in March on the stability and reliability of the financial system. It is based on the observation that wage practices rewarding short-term benefits led to excessive risk-taking and contributed to increasing the losses of financial undertakings since the financial crisis began.
ing the European Council held in March on the stability and reliability of the financial system. It is based on the observation that wage practices rewarding short-term benefits led to excessive risk-taking and contributed to increasing the losses of financial undertakings since the financial crisis began.
Multi-year performance assessment. “Remuneration policy should aim at aligning the personal objectives of staff members with the long-term interests of the financial undertaking concerned” reads the Commission’s recommendation.
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