Top German bank boss gives up golden parachute

30th March 2009, Comments 0 comments

Politicians in Germany across the political spectrum have been lining up to condemn the huge bonuses paid out to failing banking executives.

Berlin -- The former head of Dresdner Bank, one of Germany's top banks, said Sunday he would forgo his leaving bonus worth 3.6 million euros (4.8 million dollars), amid growing outrage over executive pay.

Following significant political pressure and public anger, the 55-year-old Herbert Walter told the Bild am Sonntag: "Considering the huge effects of the financial crisis on Dresdner Bank, I am giving up this bonus."

He added: "I can understand that many people do not understand the bonus systems of banks. Executives' pay must in future be more directly linked to the long-term success of the company."

Walter ran Dresdner -- which has suffered heavy losses in connection with the international financial crisis and the collapse of the US market for high-risk or subprime mortgages -- from March 2003 to January 2009.

Politicians in Germany across the political spectrum have been lining up to condemn the huge bonuses paid out to failing banking executives.

Economy Minister Karl-Theodor zu Guttenberg told Saturday's Bild it was "only decent" that these managers pay back their bonuses.

"I have absolutely no sympathy for these immoderate demands of bosses of companies which today cannot even pay salaries, much less bonuses, without taxpayers' help," the conservative minister added.

His centre-left colleague at the finance ministry, Peer Steinbrueck, told the same newspaper: "With such indecent behaviour, these people ... are seriously harming our society."

AFP/Expatica

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