18 Amendments of Sergio Gaetano COFFERATI related to 2009/2177(INI)
Amendment 2 #
Motion for a resolution
Recital A
Recital A
A. whereas, irrespective of the type of company or the sector in which it operates, a number of questions related to companies’ management are important in the general context of the deontology of business conduct, such as the duty of care, transparency, risk managementcorporate social responsibility, risk management, the economic sustainability of financial investment decisions, board practices or the exercise of shareholders’ rights; whereas the recent financial crisis showed that those questions need to be continuously analysed in order to help find solutions allowing companies to face current challenges and to help promote economic growth and higher employment within the EU,
Amendment 5 #
Motion for a resolution
Recital B
Recital B
B. whereas the crisis also showed close links between risk management and remuneration policy and the importance of the latter in the mechanisms governing the proper functioning of companies; for this reason risk management should be duly taken into account when devising remuneration policy in a way that does not result in undermining the incentive system but rather in ensuring that if there are strong incentives care is taken to provide equally strong risk management systemsso as to enable strong risk management systems to be built into a broader, balanced approach to governance,
Amendment 12 #
Draft opinion
Paragraph 1
Paragraph 1
1. Stresses that the European Union and the world needs a new social and environmental businessproduction model based on the long term which takes into account the general interest and the interest of the workers and a new financial architecture based on a system of prudential and ethical rules and on national and European supervisory authorities with binding powers; believes that the financial sector should respond to the needs of the real economy, contribute to sustainable growth and demonstrate greater social responsibility, in particular by using employment- and training-friendly resources;
Amendment 12 #
Motion for a resolution
Recital I
Recital I
I. whereas some aspects of principles contained in the recommendations aremain unclear of paramount importance and have to be properly translated into practice, such as the concept of performance criteria, which should help in creating the link between pay and performance, the notion of ‘inadequate performance’ in the case of termination payments, the termination payment and variable components of remuneration in the financial services sector,
Amendment 13 #
Motion for a resolution
Recital J
Recital J
J. whereas, given the recurring difficulties in defining the link between pay and performance, the focus should be on the effectiveness of the process in which remuneration policy is determined and on transparency, both of which should be based on sound governance defined and assessed by reference to an appropriate time-frame oriented towards the medium to long term so as to avert dangerous, unsustainable risk management policies geared to the short term (if not the very short term), with defined, separated roles and the responsibilities of those involved,
Amendment 15 #
Draft opinion
Paragraph 2
Paragraph 2
2. Endorses the principles set out by the Commission in its recommendations of 30 April 2009 on, first, the structure and governance of the remuneration of directors of listed companies and, second, the structure of remuneration, the process of design and operation of remuneration policy (governance), transparency of remuneration policy and supervisory review (supervision) in the financial sector; and calls for these recommendations to be appropriately taken into account in the revision of Directive 2006/49/EC;
Amendment 16 #
Draft opinion
Paragraph 2 a (new)
Paragraph 2 a (new)
2a. Considers that the measures referred to concerning policies on the remuneration of managers of banks and credit institutions cannot merely remain recommendations but should be converted into binding measures linked to a system of supervision and penalties, with the aim of ensuring that the variable element of remuneration (bonuses, stock options and incentives) does not necessitate business investment and management policies which are excessively risky and divorced from their impact on the real economy;
Amendment 17 #
Draft opinion
Paragraph 2 b (new)
Paragraph 2 b (new)
2b. Stresses that policies on remuneration whose purpose is sound and sustainable business management have not only an ethical rationale but also a specifically economic rationale, as such policies directly affect the preservation of the assets and the development prospects of the undertakings themselves, and of the economy in general, the preservation of employment and the creation of additional employment – as required by correct and effective corporate social responsibility;
Amendment 19 #
Draft opinion
Paragraph 3
Paragraph 3
3. Stresses the need for proportionality of remuneration within companies by linking changes in the overall remuneration and pensions of directors to those of staff and to the results achieved by the company and by discouraging excessive risk-taking, and; considers that, for reasons of social justice, wishes to see the salaries, bonuses and economic sustainability, the composition, structure and level of remuneration and of pensions of the directors of listed companies, companies with public participation and/or companies receiving aid from the Member States or from the European Union capped and subject to high and progressivmust comply with the binding criteria laid down by the national and European competent authorities and must be subject to adequate taxation;
Amendment 26 #
Draft opinion
Paragraph 3 a (new)
Paragraph 3 a (new)
3a. Is convinced that, for the purpose of defining policies on the remuneration of management and by subsequently assessing these policies in relation to the management and development of the undertaking, it is necessary also to consider non-financial criteria, such as the attainment of objectives based on social and environmental responsibility, to be assessed over a sufficiently long period to be significant; stresses that the management of undertakings and policies on remuneration must respect and promote the principles enshrined in the European Treaties and directives concerning equal pay and treatment for women and men;
Amendment 26 #
Motion for a resolution
Paragraph 2 a (new)
Paragraph 2 a (new)
2a. Maintains that the EU needs an industrial, social, and environmental model geared to the long term, consistent with the general interest – of companies, shareholders, and workers – and with a new financial architecture based on a system of prudential and deontological rules and on national and European supervisory authorities with binding powers; also believes that the financial sector should meet the needs of the real economy, help to promote sustainable growth, and display the greatest possible degree of social responsibility;
Amendment 27 #
Motion for a resolution
Paragraph 2 b (new)
Paragraph 2 b (new)
2b. Maintains that remuneration policies making for sound, sustainable governance are necessary not just for deontological reasons, but also for eminently economic reasons, given that policies of this kind have a direct impact in terms of assets and the development outlook for companies themselves as well as the economy in general, and of preserving and creating higher levels of employment;
Amendment 28 #
Motion for a resolution
Paragraph 3 a (new)
Paragraph 3 a (new)
3a. Considers that the provisions being mentioned in connection with remuneration polices for directors of banks and credit institutions have to be more than mere recommendations and must hence take the form of binding measures linked to a system of oversight and penalties, the object being to ensure that the variable component of remuneration – bonuses, stock options, and incentives – does not drive companies to adopt over-risky investment and management policies which pay no heed to the fallout for the real economy;
Amendment 30 #
Motion for a resolution
Paragraph 3 b (new)
Paragraph 3 b (new)
3b. Calls for due account to be taken of the need for proportionality in remuneration within companies by linking the trend in managers’ remuneration and pensions as a whole to employees’ remuneration and pensions and company performance, discouraging excessive risk-taking; believes that, for reasons of social justice and economic sustainability, the make-up, structure, and level of the remuneration and pensions paid to managers of listed companies and companies which are partly public-owned and/or are being supported by Member States or the EU should satisfy binding criteria laid down by the proper national and European authorities and should be subject to progressive taxation in the appropriate form;
Amendment 34 #
Motion for a resolution
Paragraph 4 a (new)
Paragraph 4 a (new)
4a. Calls for the necessary steps to be taken to bring transparency to bear on the remuneration policies applied to company directors and make them comprehensible to shareholders and workers; considers it important that workers and trade unions have the right to be informed and consulted through works councils and group works councils; considers that company-level remuneration committees could play a useful role in terms of transparency, information, and bringing policies on managers’ remuneration to wider notice, thereby enabling them to be linked to investment decisions aimed at promoting operational development, employment, and better working conditions for employees;
Amendment 40 #
Draft opinion
Paragraph 8
Paragraph 8
8. Calls for complete transparency for employees and citizens with regard to remuneration policies for directors and a right to information, supervision and consultation for employees and their trade union organisations through works councils and group works councils; considers that company councils on pay can play a useful role in terms of transparency, information and disclosure of management pay policies, with the aim of linking such policies to corporate investment decisions which protect employment and the working conditions of employees;
Amendment 40 #
Motion for a resolution
Paragraph 5 a (new)
Paragraph 5 a (new)
5a. Is convinced that for the purpose of framing policies on directors’ remuneration and subsequently assessing them from the point of view of governance and company development, non-financial criteria also need to be taken into account, one example being the extent to which a company has attained its objectives as regards social and environmental responsibility, and that the period to be covered in such cases has to be sufficiently long to allow meaningful assessment;
Amendment 41 #
Motion for a resolution
Paragraph 5 b (new)
Paragraph 5 b (new)
5b. Maintains that governance and remuneration policies have to conform to and promote the principles laid down in the Treaties and European directives regarding equal pay and equal treatment of women and men;