Toward Digital Transformation and Sustainability of JVSS

Abstract

Remuneration policy is a well-known document in financial companies, which they are also obliged to publish in accordance with EU regulations and Commission recommendations (2004/913/EC). Directive (EU) 2017/828/EC (the so-called Shareholder Rights Directive - SRD II) newly regulated and encouraged long-term participation of shareholders in the formulation of remuneration policy and adequate reporting of remuneration, which also extends to the non- financial field. To further modernize corporate law, the European Commission has also adopted an action plan that intends to involve shareholders more actively in the corporate governance structure in order to contribute to the long-term sustainability of companies in the EU. In the light of harmonization, this modernization was necessarily followed by the Slovenian legislator and at the beginning of 2021 the amended Companies Act (ZGD-1) was adopted, which implemented the remuneration policy and reporting on this policy in the Slovenian corporate system. Reporting or, in a broader sense, disclosure of remuneration policy has been added to the very concept and scope of the remuneration policy. This is part of the general policy of the company and therefore disclosure is important to internal as well as external stakeholders. As corporate law, and especially corporate governance, regulates the relations between the management body (management or supervisory board), the supervisory body (supervisory board or board of directors), shareholders and stakeholders of the company (other stakeholders), corporate institutions must be placed in tense relations of rights and obligations between the bodies in the company, in order to improve the corporate environment and thus corporate governance itself. Namely, corporate governance also determines the structure (organization) that supports the company's goals, the means to achieve them and the monitoring of results. The purpose of corporate governance is to help create the environment of trust, transparency and accountability needed to promote long-term investment, financial stability and business integrity, thus also supporting stronger growth and the development of a more inclusive community. In addition to the legislative framework, it is therefore necessary to improve and change autonomous legal sources (eg corporate governance codes). corporate governance in companies and make suggestions for further improvement.