The Directive seeks to mitigate this by addressing some principal agent problems in the investment chain.
At a glance
| INSTITUTIONAL INVESTORS | ASSET MANAGERS | PROXY ADVISORS | COMPANY DIRECTORS |
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- Establish and publicly disclose an engagement and voting policy. Publicly disclose how they implement the policy on an annual basis.
- Publicly disclose how their equity strategies align with the profile and duration of their liabilities, particularly long-term liabilities, and how they incentivise and monitor asset managers to do the same.
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- Establish and publicly disclose an engagement and voting policy. Publicly disclose how they implement the policy on an annual basis.
- Disclose to institutional investor clients how their equity strategy aligns with long-term liabilities.
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- Publicly disclose compliance with a code of conduct, to be determined by the Member State.
- Publicly disclose key elements of how they prepare research, advice and voting recommendations.
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- Establish a clear remuneration policy in line with the long-term interests and sustainability of the company. Submit the policy to vote at least every four years. Member states may make this vote binding or advisory.
- Provide a clear, understandable remuneration report, including explaining how remuneration contributed to the long-term performance of the company. The report is subject to an advisory vote at the annual meeting.
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In general, institutional investor, asset manager and proxy advisor requirements are on a comply-or-explain basis. Requirements for company directors are mandatory.
