ING plans to hand out bonuses
After receiving a government bailout of 10 billion euros, ING Group intends on rewarding management with generous bonuses.
THE HAGUE—Bank Group ING is going through with a plan to hand out bonuses to personnel for fiscal year 2008, despite steep losses.
The intention was announced Thursday on the wesbite 925.nl.
An ING spokesperson stated: “There were agreements made in the past. We’d like to honor those agreements, but at the same time, we’d also like to take the current situation into account.”
ING is in deep water due to the financial crisis. The company has requested government assistance twice now. In November ING received a capital injection of 10 billion euros from the Dutch state.
In January it was revealed that the government would shoulder the bulk of the risk from the American prime rate mortgage crisis.
According to reliable estimates, the website 925.nl reported that ING will hand out a total of 950 million euros in bonuses.
An ING spokesperson wouldn’t go into figures, stating only that the actual amount was far from 950 million.
The Socialist Party (SP) is asking for clarification on the ING bonuses from Finance Minister Wouter Bos. SP House member Ewout Irrgang said: “I’m not referring to average clerks at ING who earn little, and are now concerned they’ll loose their jobs. But I’d find it idiotic if bankers who are partly responsible for the crisis receive bonuses while elderly people live in fear that their pensions will be cut.”
The spokesperson from ING said that the bonuses would be less than half that of the 2007 amount. In 2007 ING made a 9.2 billion euro profit. Employees who received bonuses came from across the company.
According to the spokesperson employees with collective labour agreement (CAO) contracts also received bonuses.
The heads of ING agreed to scrap bonuses for 2008 as a precondition for a capital injection from the state.
At the beginning of February it was announced that ING CEO Jan Hommen would receive no salary for the time being. Hommen is scheduled to receive his salary once a new benefit system is in place.