For the first time, a Parliament has decided to limit the remuneration of heads of businesses, with the adoption of a custom-made tax system. A new law, presented by Labor MP Paul Tang, was voted to that end on September 16, 2008, by a large majority of the Dutch Parliament. From January 1, 2009, the CEOs and managers of the approximately 90 companies listed in Amsterdam will have to obey new rules. (Ref. 080697)
According to the new rules adopted by the Parliament, CEOs will be taxed up to 30% of their bonuses if they exceed net annual earning of over €500.000. Then, the shares of their own company will be frozen as soon as negotiations open for the possible buyout of the company. The companies themselves are exposed to heavy penalties – 15% of additional tax on their earnings – if the wages of the CEO is raised a few months before his departure to artificially inflate the pension. Finally, investment
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