Preparing for the 2020 AGM: all eyes on remuneration
Under the recently adopted bill implementing the revised European Shareholder Rights Directive (SRD) in the Netherlands, shareholders and employees of Dutch companies listed on an EU-regulated market will have more influence on executive pay. This means that remuneration is likely to be the centre of discussion at upcoming AGMs. As the implementing bill will enter into force soon and without a transition period for the majority of the provisions, most listed companies will have to submit an SRD-compliant remuneration policy for adoption to their 2020 AGM. In addition, an SRD-compliant remuneration report will have to be presented and put to an advisory vote.
Remuneration will also be a focus point for Dutch corporate governance forum Eumedion. In its Focus Letter 2020, Eumedion encourages companies to engage with all relevant stakeholders before presenting the remuneration policy to the AGM.
For other key topics of the SRD-implementing bill, please see our June guidance. Our guidance remains unchanged as there have been no further amendments to the implementing bill or changes in the minister’s opinion on some of the bill’s topics.