The Financial Supervisory Commission (FSC) is drafting measures to enhance corporate transparency that will require financial institutions to reveal, under certain circumstances, salaries and perks given to senior executives and board directors, an official said yesterday.
“Current laws will be revised to allow, under certain conditions, public disclosure of compensation given by listed financial institutions to senior executives and board members,” the official said on condition of anonymity.
“This is part of our efforts to increase transparency and streamline the market in tough economic times,” the official said.
Salaries and dividends paid to board members and senior executives at financial institutions became a major concern after American International Group awarded more than US$165 million in bonuses to senior executives after securing bailout funds from the US government.
G20 leaders promised in London to restrict financial compensation for senior executives at banks, insurance companies and financial holding groups to maintain market order.
The official said the local bankers association had approved an amendment to its membership regulations to require all member banks to set up a salary supervisory commission, with independent board members as conveners.