The AFM has concluded in its recent remuneration review that in their 2010 reports more companies explain remuneration in the form of shares or options, but that transparency in financial reporting can be improved on several points. In 30% of cases, there is no information on the granting of shares or share options to managing directors. And 25% of companies which do provide this information fail to include the element based on shares in the total remuneration. The AFM conducted its review on the basis of the annual accounts of 100 listed companies. The review is part of the AFM's 2011 report on its supervision of financial reporting. In the report, published annually, the AFM summarises its activities under the Financial Markets Supervision Act.
Another aspect of financial reporting which has received special attention from the AFM is the application of the "materiality" concept in annual accounts. At a roundtable session with various parties, the AFM was asked to provide more clarity on why, in the course of its regular supervisory activities, it considers certain shortcomings in reporting as material. The AFM aims to provide this clarity in consultation with all parties involved.
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