Long-term shareholder engagement

Key points:

The EESC:

• supports the provisions to the Shareholder Rights Directive, especially those that seek to strengthen the link between the remuneration awarded to directors and the long-term performance of companies,
• notes that in its impact assessment the Commission argues that its proposals will lead to only a marginal increase in the administrative burden on listed companies. It will be important to assess this balance during the ex post evaluation of the Directive,
• accepts the argument that, by creating more transparency on the impact of investment policies, investors will make more informed decisions and are likely to become more engaged with their investee companies. This should lead to better long-term performance by listed companies.

Other relevant EESC opinions:

• The EU corporate governance framework (CESE 1582/2011 - INT/581)
• Corporate governance in financial institutions and remuneration policies (CESE 62/2011 - INT/527)
• Single-Member Private Limited Liability Companies (ongoing opinion - INT/744)
• Finance for business/alternative supply mechanisms (ongoing opinion - ECO/361)
• Long-term financing - follow-up (ongoing opinion - ECO/365)

For more information please contact the INT Section Secretariat.