Regulatory Alerts2021-10-09
Circular 3/2021 of the National Securities Market Commission modifying Circular 4/2013 on Directors' Remuneration Reports and Circular 5/2013 on Corporate Governance Reports
The Spanish National Securities Market Commission (CNMV) issued Circular 3/2021 to amend the reporting models for directors' remuneration and corporate governance of listed companies, transposing EU Directive 2017/828 on long-term shareholder engagement. The amendments introduce new disclosure requirements regarding deviations from remuneration policies, the link between pay and sustainable long-term performance, and the introduction of loyalty voting shares. Additionally, the circular updates definitions for related-party transactions, mandates disclosure of directors' external roles and other remunerated activities, and abolishes corporate governance reporting obligations for non-listed entities issuing regulated market securities.
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