New listed company governance code will include pay gap information


Amendments to the current Dutch corporate governance code for listed companies include a clause requiring firms to publish the size of the pay gap between senior staff and shop floor workers.

By publishing the size of the pay gap, investors and other interested parties will be able to flag up the issue if they feel the gulf is becoming too wide, the Volkskrant said on Thursday.

Research by the Volkskrant earlier this year showed senior executives at some Dutch companies earn more than 100 times as much as their average employees. The revised code says companies would be free to compare their position to other firms to show the pay gap is not unreasonable.

The new corporate governance code also states that supervisory board members may not be paid in shares and they are limited to eight years in the job. Two extensions of two years will be permissible if a proper explanation is given in the annual report.

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