Odd Einar Dørum, the Norwegian Minister of Justice, wants to reduce the top management's huge salaries. A new bill proposes to take away much of the boards power to determine the top executives salaries.
After the many scandals in international finance, the new bill aims to prevent the escalation of shocking off the top salaries which have been seen international. Top executives are no longer going to be able to bet on their good friendships in the board to assure them top salaries and nice going away presents.
The bill will remove the power from the board and place it with the stockholders. It is the general assembly, not the board, which is going to approve the salary conditions.
The board will every year draw up guidelines for the top salaries which the general assembly then will take into account. Furthermore, all information about fringe benefits, options, bonuses, pension agreements and final salary must be approved, according to the Norwegian daily, Aftenposten.
It is particularly in cases where the salaries are connected to the stock value which will be affected by the bill, for example in cases of options.
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