EU finance ministers to tackle fat cat pay

BERLIN (Reuters) - EU finance ministers plan to introduce measures to stop excessive pay for company managers at a meeting next week, a German newspaper reported on Wednesday.

Amid financial market turmoil, economy and finance ministers from European Union countries meet on Tuesday in Luxembourg.

The Financial Times Deutschland reported that ministers want to stop structures such as share option schemes which can reward managers who make decisions that boost company share prices in the short term but damage firms in the long run, said the paper.

"The compensation model should serve long-term, company-wide profitability," said a draft resolution on executive pay quoted by the paper.

"National governments should work on weakening the risks which result from a structure of incentives aimed at short-term profits," the paper also quoted the draft as saying.

Several EU leaders, including Luxembourg Prime Minister Jean-Claude Juncker, have called for measures to tackle fat bonuses received by banking executives.

The European Commission has issued guidelines to EU states recommending that executives publish their salaries or explain why they will not do so.

(Reporting by Madeline Chambers; Editing by Tom Hals)