New claw-back legislation from 1 January 2014
Companies may revise and claw back directors’ bonuses if they are excessive or wrongly awarded. Companies must also deduct from executive remuneration any profit made from share price increases during significant events such as a public offer. This is set out in new legislation that took effect on 1 January 2014 and also applies to existing pay packages.
Our Legal Alert of December 2013 outlines the main elements of the new law. In a set of Q&As we illustrate the practical impact of the new law, and in a separate flow chart we explain the process of calculating increases in value in the case of a public offer.