Please note that this does not constitute a formal record of the proceedings of the meeting. It is dependent on interpretation and acts as an unofficial summary of the debate.
Rapporteur Sergio Gaetano Cofferati (S&D, IT) stated that the file is enormously important for the future of the economic system in Europe. The Commission has looked at this in a very reductionist way, he regretted, explaining that the Commission has been focusing almost exclusively on shareholders. This limitation must be overcome, he felt. All stakeholders in the undertaking must be looked at, he said, insisting also on the rights of employees. Some countries already have surveillance bodies or boards within the company which help to look after the workers. This should be a general feature when looking at the future, he suggested.
He hoped that limitations set up by the Commission can be remedied, mentioning again their focus on shareholders. The European economy has been penalised by a system where the whole idea is to bring profit in the short-term. This is contradictory with the notion of corporate responsibility, he argued.
The rapporteur believed that the committee needs to work on the positive aspects of the proposal, and continued on the topic of transparency. He stated that shareholders nearly have an “institutional function” in providing greater involvement of shareholders. The relationship between shareholders and managers must be made more transparent, he insisted. It is quite common for shareholders to invest for purely financial reasons, without being informed of strategic decisions of companies. This represents a weakness for companies and their governance structure. It will be necessary to reinforce transparency so that companies know the changes which are reoccurring when they take shape within their overall structure.
He also mentioned performance-related pay, which he explained can lead to an absurd situation in which companies that are struggling pay enormous benefits to their managers.
He concluded that he would be willing to discuss the proposal in more detail in the coming weeks and months.
António Marinho E Pinto (ALDE, PT) read a declaration by shadow rapporteur Cecilia Wikstrom (ALDE, SE) where she apologised for her absence at this meeting and thanked the rapporteur for the great work done.
Pascal Durand (Greens/EFA, FR) complained that financial institutions have shifted their full attention to the return of investment, which is a very short-term approach. He also mentioned conflicts of interest between employees, managers and shareholders. The workers are the one creating the wealth on a daily basis, he insisted, and pointed out that this is a political issue and not only an economic one.
Also shadow rapporteur Giovanni Toti’s (EPP, IT) position was communicated to the Committee by a party colleague. He agrees that growing remunerations of management boards in situations that are difficult for companies are absolutely unacceptable. He warned that elements of the original proposal might have a negative impact on the functioning of European businesses and their long-term creative operations, which, in turn, might endanger their competitiveness on the global market. Giving minority shareholders greater control on transactions will increase their involvement in the company, he believed, which also better protect their rights in the future.
He pointed out that some legal instruments are already in place in some Member States which ensure that these links are already in place. This guarantees transparency and supply of information.
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