Executive Remuneration: An Enigma
74 Pages Posted: 1 Apr 2009
Date Written: February 12, 2008
According to section 130 of the Spanish Public Limited Companies Act, directors' remunerations must be established in the bylaws. Within this framework, the decision on the specific or maximum amount to be paid to directors is vested on the General Shareholders Meeting. When the management of the Company is organized as a board of directors, the scope of the aforementioned rules, contrary to the common view, shall not include pays to remunerate executive functions. The power to remunerate executive directors shall be granted, as it results from the spirit of section 141 of the Act, to the Board of Directors.
Keywords: Spanish Corporate Law, Executive Remuneration, Executive Directors, Frau Legis
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