A
coalition of European union groups, including the TUC, is urging the European
Commission and the UK, German and Dutch governments to place curbs on executive
pay.
The
TUC claims that company boards that award themselves large pay rises without
any clear link to performance are creating a crisis of confidence among
customers, staff and shareholders.
The
union groups are calling for full details of the reward packages of every
member of an executive board to be published in annual business reports.
They
are also calling for company supervisory boards to discuss and decide on the
structure and amount of all remuneration parts that are fixed and variable,
such as retirement schemes.
The
TUC claims these decisions can only be prepared by relevant subcommittees once
staff representatives are involved.
Under
the proposals, members of supervisory councils would have the option to
establish a limitation on stock options, which are sometimes part of the
remuneration package.
TUC
general secretary Brendan Barber said: "There is a concern that we are in
danger of seeing American-style practices applied across many businesses. We
must resist the American way."
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