Philips' shareholders reject pay package

Friday 28 March 2008

Philips' shareholders have taken the unusual step of rejecting the company's new management pay package proposal, the Financieele Dagblad reports on Friday.

The paper says it is the first time shareholders have taken such a step at a Dutch firm.

Shareholders are angry that the deal gives managers options even if they under-perform. Some 57% of shareholders voted against the plan.

The government is currently working on proposals to restrict exessive pay deals for executives – particularly those paid to staff considered to have failed at their job.

'Philips proposals are not in line with the current discussion over top people's pay,' Robeco's Erik Breen told the paper.

© DutchNews.nl

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