The Dutch government announced, on March 14, 2008, a bill to limit managers' pay. Four important measures should come into effect on January 1, 2009, after being adopted in Parliament. This is the first time in Europe that restrictive measures have been taken to control directors' remuneration. (Ref. 080233)
The government announced four measures to control executives’ pay:
- Company managers earning more than €500.000 a year will have to pay 30% of taxed on their bonuses if those exceed the annual net salary.
- CEOs’ stock options will be frozen as soon as negotiations to buy their company open.
- If the CEO’s salary increases before they leave, companies risk a big fine going up to 15% of extra tax on their benefits.
- Investment fund administrators will be taxed up to 25% on the benefits they get from s
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