EU “goldplating” and stock option ban for board members in Iceland
In a recent article in Vidskiptabladid business publication, Sara Rut Sigurjonsdottir and Agla Eir Vilhjalmsdottir explore how Iceland’s current legal framework may be placing local companies at a disadvantage when competing for international board talent.
Under Icelandic corporate law, most companies are prohibited from offering board members stock options or other share-based incentives, a restriction that goes beyond European Commission recommendations. This so-called “goldplating” could prevent companies from attracting individuals with international experience or specialist expertise, especially when compensation expectations are shaped by global standards.
In contrast, other Nordic countries offer more flexible approaches through non-binding corporate governance guidelines, allowing companies to decide, subject to shareholder scrutiny, whether stock options are appropriate.
The article questions, in light of growing international competition, whether Iceland should reconsider its rigid stance and empower shareholders to assess what is best for their companies, in order to remain competitive.
The full article is available on Vidskiptabladid's website (in Icelandic only).
In a recent article in Vidskiptabladid business publication, Sara Rut Sigurjonsdottir and Agla Eir Vilhjalmsdottir explore how Iceland’s current legal framework may be placing local companies at a disadvantage when competing for international board talent.
Under Icelandic corporate law, most companies are prohibited from offering board members stock options or other share-based incentives, a restriction that goes beyond European Commission recommendations. This so-called “goldplating” could prevent companies from attracting individuals with international experience or specialist expertise, especially when compensation expectations are shaped by global standards.
In contrast, other Nordic countries offer more flexible approaches through non-binding corporate governance guidelines, allowing companies to decide, subject to shareholder scrutiny, whether stock options are appropriate.
The article questions, in light of growing international competition, whether Iceland should reconsider its rigid stance and empower shareholders to assess what is best for their companies, in order to remain competitive.
The full article is available on Vidskiptabladid's website (in Icelandic only).
In a recent article in Vidskiptabladid business publication, Sara Rut Sigurjonsdottir and Agla Eir Vilhjalmsdottir explore how Iceland’s current legal framework may be placing local companies at a disadvantage when competing for international board talent.
Under Icelandic corporate law, most companies are prohibited from offering board members stock options or other share-based incentives, a restriction that goes beyond European Commission recommendations. This so-called “goldplating” could prevent companies from attracting individuals with international experience or specialist expertise, especially when compensation expectations are shaped by global standards.
In contrast, other Nordic countries offer more flexible approaches through non-binding corporate governance guidelines, allowing companies to decide, subject to shareholder scrutiny, whether stock options are appropriate.
The article questions, in light of growing international competition, whether Iceland should reconsider its rigid stance and empower shareholders to assess what is best for their companies, in order to remain competitive.
The full article is available on Vidskiptabladid's website (in Icelandic only).