This contribution analyses legislative initiatives taken at the European level concerning the remuneration of banks' executives. It concludes that, while the earlier responses were predominantly focused on 'pay governance' as the form, structure and level of directors' remuneration were (still) matters falling within the competence of companies and their shareholders, latter responses focused on 'pay design' and more specifically on the design of the structure and level of variable remuneration. This development can be explained by the fact that the financial crisis showed that the structure of executive remuneration led to excessive risk-taking that contributed to the demise of banks.
European Company Law