ARIR launches a guideline on the remuneration policy implementation, mandatory for listed companies starting this year

The Romanian Investor Relations Association (ARIR), together with a working group consisting of lawyers, consultants and listed companies representatives, announce the release of a guideline, a set of best practices recommendations for implementing the remuneration policy, available for download here. We support the listed companies by defining the most important elements which should  be included in a clear Remuneration Policy, in accordance with Issuers Law and investors’ expectations. At the same time, the guideline can be also used by companies that are not listed as a model of best practices.

The Remuneration Policy should include in a clear and easy to understand manner the principles underlying the remuneration of the managers, all the remuneration elements to which the managers are entitled, as well as the justification for granting the remuneration in relation to the company’s long-term objectives. All these elements have been addressed in the implementation guideline which provides recommendations and directions, including on the decision-making process.

Daniela Șerban, ARIR President & Co-founder:

“Through this project we offer an innovative tool, useful for companies, aiming to form unitary transparency practices and to harmonize the types of information made available to the public and investors. Corporate governance is a key element pursued closely by investors, with remuneration policy being a crucial point. We appreciate the extensive effort of the working group that brought together the best experts from the capital market, for the benefit of listed companies.”

The implementation Guideline provides a balanced and flexible guidance, which recognizes and respects the diversity of the corporate governance systems, companies’ unique business strategies and approaches towards remuneration topic.  Each listed company is encouraged to use the guideline according to its needs and principles. This document does not include recommendations on structuring or developing the remuneration packages.

The document was elaborated by a working group consisting of over 15 market specialists: lawyers (Diana Ispas, Partner, Bondoc & Asociații; Vasile Soltan, Junior Associate, Bondoc & Asociații; Günay Duagi, Senior Managing Associate, KPMG Legal – Toncescu și Asociatii SPARL; Raul Andrei Dimitriu, Senior Associate, KPMG Legal – Toncescu și Asociatii SPARL; Narcisa Oprea, Partner, Schoenherr; Silviu Lazăr, Associate, Schoenherr), consultants (Elena Doagă, Tax Manager, KPMG Romania, Manuela Pănescu, Sustainalytics), listed companies representants (ALRO Team coordinated by Ana-Maria Imbrea, Director of Investor and Corporate Relations Department; Ioan Șumandea, Expert Legal Advisor for Corporate Governance, Banca Transilvania; Ștefania Drăghici, Management Consultant, Performance Management and Recruitment Department, Electrica, OMV Petrom Team coordinated by Ana-Maria Ralea, Legal Corporate Department Manager).

ARIR was founded at the initiative of Daniela Șerban in November 2018 together with the founding members: Bucharest Stock Exchange (BVB), ALRO, Electromagnetica, Franklin Templeton Management – Bucharest office, Hidroelectrica, Nuclearelectrica, Teraplast, Transelectrica, Cosmin Răduță and Tony Romani. Electrica, OMV Petrom, Antibiotice, Purcari, Idea Bank, BRK Financial Group, Banca Transilvania, Transgaz and Biofarm and Medlife joined the community as Associate Members. INNOVA Project Consulting, ENVISIA, RTPR, Intercapital Invest, eVote and Mazars became Affiliate Members.

About Romanian Investor Relations Association (ARIR):

ARIR is a non-governmental and non-profit organization that was set-up to provide current and potential issuers a platform for the development of Investor Relations (IR) professionals and contribute to the implementation of best practices in investor communication and corporate governance. It was established in November 2018 and has as members listed companies, companies with potential to become listed companies, fund managers, IR professionals as well as consultants. The founding members are BVB, ALRO, Electromagnetica, Franklin Templeton Management – Bucharest Branch, Hidroelectrica, Nuclearelectrica, Teraplast, Transelectrica, Daniela Șerban, Cosmin Răduță and Tony Romani, while Electrica, OMV Petrom, Antibiotice, Idea Bank, BRK Financial Group, Banca Transilvania, Transgaz, Biofarm and MedLife joined as Associate Members and INNOVA Project Consulting, ENVISIA, RTPR, Intercapital Invest, eVote and Mazars as Affiliate Members.