Netherlands: the Frijns Commission disappoints unions regarding managers’ pay

The Frijns Commission, in charge of monitoring compliance with businesses' compliance with the "Tabaksblat" code of good behavior, presented its final recommendations on December 12, 2008. The one most talked about doesn't concern managers' pay but the 180 days of reflection suggested before any change of strategy in listed companies. (Ref. 081024)
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Boards have to
reserve six months to think if shareholders demand a substantial change in
strategy. This means of fighting against shareholders’ “activism”, which
notably caused much chaos at ABN Amro in June 2007, by forcing the group to
consider a rival takeover bid while there were talks of merger with the
Barclays bank. “This proposition is totally irresponsible, especially for businesses in a delicate financial situation and about to go bankrupt” said the Dutch shareholders’ association
(V

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