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Latest News

CIPD against Europe-wide directors’ pay rules

by Personnel Today 14 Apr 2004
by Personnel Today 14 Apr 2004

The
European Union (EU) should not legislate to impose a Europe-wide
‘one-size-fits-all’ restriction on directors’ remuneration, according to the
Chartered Institute of Personnel and Development (CIPD).

Responding
to the Internal Market Directorate General (IMDG) consultation document, Fostering
an appropriate regime for the remuneration of directors, the CIPD stressed that
national governments should be left to put in place a minimum legislative
framework to set boundaries and prevent abuse.

Charles
Cotton, reward adviser at the CIPD, said: "EU-level legislation on this
matter is not necessary. National provision can do the job more effectively.

"There
has to be a careful balance to ensure that remuneration packages meet the needs
of the organisation, its directors and its shareholders. A one-size-fits-all
legislative approach could disturb this balance," he said.

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He
said the CIPD supported reward transparency, but not requirements for
businesses to adopt remuneration strategies or practices that are not in their
interests.

By
Mike Berry

Personnel Today

Personnel Today articles are written by an expert team of award-winning journalists who have been covering HR and L&D for many years. Some of our content is attributed to "Personnel Today" for a number of reasons, including: when numerous authors are associated with writing or editing a piece; or when the author is unknown (particularly for older articles).

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