Belgian listed companies will have to publish a remuneration policy and detailed information about how much executive directors earn, under a revised version of the country’s corporate governance code.

Companies will have to reveal the amount of pay and benefits that executive directors receive, with a breakdown showing the split between basic pay, bonuses, pension payments, and other benefits. The targets and incentives that determine whether bonuses are paid also have to be disclosed.

In an effort to clampdown on golden parachutes, the code says that severance pay for a chief executive or other executive manager should not exceed a year’s basic pay and bonuses. The cap applies to contracts agreed on or after July 1, 2009.

Belgium is among the first European countries to publish a new corporate governance code that attempts to deal with problems exposed by the current financial crisis. Its new code, which companies follow on a “comply or explain” basis, replaces a version published in 2004.

Apart from the measures on pay, the new code clarifies the board’s responsibilities for internal control and risk management and enhances the roles of board committees.

Herman Daems, chairman of the Belgian Corporate Governance Committee, which produced the code, said the financial crisis had led to “a great deal of criticism” of corporate governance codes and calls for legislation rather than guidance. But he added: “a well-developed and transparent system of recommendations complementing existing legislation is the best solution. “ The revised code “will make a considerable contribution to bolstering investors’ trust in Belgian listed companies,” he said.

The 2009 Code applies to reporting years beginning on or after Jan. 1, 2009. Companies are expected to comply with the new provisions for disclosure in the 2009 Corporate Governance Statement of their annual report, to be published in 2010.