Besides directives and regulations the European Commission is also entitled, in accordance with Art. 211 EC, to lay down recommendations for member states. These recommendations are not binding (Art. 249 EC), but national courts have to take them into account when interpreting European law.
In the context of the Action Plan the Commission has so far laid down two recommendations. The first recommendation deals with the role of non-executive or supervisory directors. The second recommendation deals with the issue of directors’ remuneration. In response to the financial crisis, in April 2009 the Commission launched a number of initiatives in the area of remuneration policy, including a Communication (COM (2009) 211 final) and two complementary Recommendations. The first deals with the regime for the remuneration of directors of listed companies and complements Recommendations 2004/913/EC and 2005/162/EC. The second on remuneration policies in the financial services sector, focuses on addressing the perverse incentives and excessive risk-taking in firms active in this area.