Transparency in remuneration policies takes on a new dimension with the implementation of Directive (EU) 2023/970, starting with the summer of 2026. The regulation introduces firm requirements regarding the clarity of remuneration criteria, the documentation of policies, and the objective justification of salary decisions, with the aim of reducing unjustified differences between the pay of women and men, while also strengthening coherent pay practices within organizations.
For many companies, aligning with this standard will require a careful assessment of existing structures and mechanisms.
In the case of companies listed on the Bucharest Stock Exchange, transparency regarding the remuneration of management—both at the executive level and at the level of members of the Boards of Directors—is already a reporting obligation. Although these disclosures respond to different legislative requirements and extend as far as the transparency of individual remuneration levels—a level of detail not required by Directive (EU) 2023/970—they nevertheless provide a useful benchmark for how transparency can be applied in practice and represent Romania’s first steps toward greater pay transparency.
Read more in Romanian here and access KPMG in Romania's study below.
