Ljubljana, 08 December (STA) - A new Corporate Governance Code for listed companies was adopted Tuesday, due to take effect in 2010. It has been adjusted to legislative changes, EU recommendations and examples of best practice.
The document has been signed by Ljubljanska borza, the manager of the Ljubljana Stock Exchange, the Manager Association and the Association of Supervisory Board Members.
Compared to the previous version, it places greater emphasis on the work of supervisory boards, urging them to be more active in company management. Provisions on executive pay have also been updated.
Aleksander Svetelsek, the head of the Manager Association, said the Corporate Governance Code increases the influence of shareholders and their say in executive remuneration.
Shareholders are allowed to decide on compensation and the supervisory board is responsible for execution of their decision.
Criteria for variable management pay will be set down every year in order to prevent unwarranted bonuses, while the salary will depend on overall company performance, not just current profit.
Borut Jamnik, who chairs the association of supervisors, added that the code stipulated at least half of the supervisors must be independent.