RegulationAccounting StandardsMEP calls for IASB pay cuts

MEP calls for IASB pay cuts

Board members of accounting standard setter the IASB have come under fire for the size of their remuneration packages amid scrutiny of how the organisation is governed

MEP calls for IASB pay cuts

BOARD members of accounting standard setter the IASB have come under fire for the size of their remuneration packages amid scrutiny of how the organisation is governed.

In a letter to Michael Prada, chair of the IFRS Foundation, the body that oversees the work of the IASB, MEP Sven Giegold, called on IASB chairman Hans Hoogervorst to take a pay cut because “the remuneration of the IASB board members does not correspond with the public interest orientation of IFRS”.

Giegold, who sits on the European parliament’s influential economic affairs committee, was responding to exposure draft of amendments to the IFRS Foundation Constitution to review its governance structure and effectiveness.

Hoogervorst was paid £558,200 according to the IASB’s 2015 annual report, up from £554,000 the previous year.

“The IASB chairman Hans Hoogervorst received $875,458 as compensation from the IFRS Foundation in 2014. Therefore, we call for reducing immediately any excessive remuneration,” Giegold wrote.

In addition, Giegold also called on the IFRS Foundation to aim for a more diversified and balanced financing structure, including on the basis of fees and public sources, and to to involve the European Parliament and the Council of the European Union at an early stage when developing financial reporting standards in general and in the endorsement process in particular.

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