Groenink's ABN Amro bonus under fire

17th October 2007, Comments 0 comments

17 October 2007, AMSTERDAM - The Dutch parliament is due to discuss the personal profit of more than EUR 20 million which ABN Amro's chairman of the managing board Rijkman Groenink is due to receive as a result of the bank's takeover.

17 October 2007

AMSTERDAM - The Dutch parliament is due to discuss the personal profit of more than EUR 20 million which ABN Amro's chairman of the managing board Rijkman Groenink is due to receive as a result of the bank's takeover.

The leftist Socialist Party and the liberal-right Freedom Party (PVV) Tuesday requested from Finance minister Wouter Bos (Labour) a next day debate on Groenink's personal profit.

The sum Groenink is expected to get results from the successful takeover of the Netherlands' biggest bank by a banking consortium consisting of Royal Bank of Scotland (RBS), Fortis NV and Banco Santander.

One day after the consortium announced the takeover would go through, Groenink said he would step down after the official transfer of ownership. This is due to happen on Wednesday.

If Groenink steps down and sells his shares and options, the sum he will receive amounts to more than EUR 20 million. This excludes possible extra sums Groenink may receive following his departure.

The exact details of his financial settlement with the bank are yet unknown.

During a debate in the Senate last week Prime Minister Jan Peter Balkenende (Christian Democrats) already indicated he found the estimated financial settlement was "rather high".

The prime minister stressed however he had no objections to granting managers bonuses following their departure, provided they had realised major achievements.

There is an ongoing debate in the Netherlands about the salaries, bonuses and financial settlements of high-ranking managers.

Leftist parties argue the salaries of top managers should by definition not exceed the gross year salary of the prime minister, which was recently increased to EUR 160,000.

[Copyright dpa 2007]
Subject: Dutch news

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