Government tackles Belgacom’s executive wages

The Belgian government, the majority shareholder of Belgacom, will either abstain or vote against several points relating to the remuneration of senior executives and directors of the company, at the general meeting of shareholders of the telecommunications group today in Brussels. "It is time that Belgacom adhered to a clear remuneration policy, in tune with its public identity," said the Minister for Public Enterprises, Jean-Pascal Labille in an internal memo. Belgacom, among other advantages, gives 200 of its senior executives "employee stock options" (ESOs). But given the slow growth of the share price, these executives receive dividends based on options received but not yet converted into shares. This hybrid remuneration system “is unusual in practice" and "raises so many questions," says Labille, asking Belgacom to come up with a new pay system that is more "respectful of  the public nature of Belgacom."