Companies with a share listing in Norway face a cap on any performance-related part of executive pay under a proposed new version of the country’s corporate governance code.

The Norwegian Corporate Governance Board, which maintains the country’s code, says the revised version will require an absolute limit to performance-related remuneration, and for a company’s remuneration statement “to be clear, easily understood and specific.”

Companies will be able to decide at what level to cap performance pay, but must disclose the limit to shareholders. Doing so, “can help to focus the attention of decision makers and shareholders on the consequences of the proposed remuneration arrangements,” the board said.

It also plans to add a commentary section to the remuneration part of the code, reminding companies to consider recent European Union recommendations on the topic.

These state that executive pay levels should promote long-term sustainability and keep the interests of the company aligned with those of shareholders, and that companies should be able to claw-back bonus payments.

Norway isn’t a member of the EU but wants its corporate governance guidance to reflect best practice.

The proposal are out for consultation until the start of September.