Remuneration policies within a corporate governance context are a widely discussed topic among scholars, practitioners and governmental organizations and particularly in the wake of the latest financial crisis. Remuneration systems are primarily introduced to mitigate the problems arising from the separation of ownership and control. However, the growing amount of institutional shareholders seems to result in anomalies when remuneration policies are established. In the light of new self-regulative initiatives, it appears as if institutional shareholders need to take a more extensive responsibility on behalf of their beneficiaries whom they ultimately serve.
European Company Law