An update to the Sapin II Law in France aims to improve transparency in business activity, including executive pay, as well as combat corporate corruption.
Several measures designed to support transparency, modernise business activity and combat corruption are included in France’s new Sapin II Law (Law 2016-1691). Also, an abundance of new provisions are expected in forthcoming ministerial orders.
The new law dictates that pay and benefit packages for executives of public limited listed companies (sociétés anonymes) must now be approved by the annual general meeting.
Rhidian David, an associate at Hughes Hubbard & Reed, explained that this measure gives shareholders a say over the criteria used for setting and allocating the remuneration and any benefits which the chair, general ma
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