EU: Finance ministers considering clampdown on 'excessive pay' for executives
Date: 14 May 2008
The chairman of the group of European finance ministers, Jean-Claude Juncker, has said that they are looking for ways to reign in what he described as scandalous pay packages for business senior executives.
A key target is likely to be so-called 'golden handshake' clauses that allow for large payments to departing executives which, in a number of countries, are currently tax deductible. Such payments have often been seen as controversial, particularly when the executive in question leaves in conditions of controversy.
Some countries have already legislated in such areas, including the Netherlands and France, which hae both set limits on the practice.
Juncker also said that large pay settlements for bosses made it more difficult to tell the broader population of workers that they should exercise wage moderation at a time of growing inflation.
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In a recent article, the BBC's economics editor Robert Peston highlighted the fact that in 2012 the chances are that the economy - punch drunk as it is from the various flavours of debt crisis it has been pummelled with over the course of the year - will be hit by the collapse of a major bank and / or government.
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