ING bank executives waive bonuses

22nd March 2011, Comments 0 comments

The chief executives of Dutch bank ING will waive their bonuses over 2010 and will not receive a planned two-percent pay rise in 2011.

In a letter to de Volkskrant, ING CEO Jan Hommen writes that: ING bank nearly collapsed in 2008 and was saved by taxpayers' money. Mr Hommen added that the bonuses and pay rises were in conformity with existing agreements with the finance ministry. The top executive was to receive a 1.25 million euro bonus on top of his 1.35 million salary.

Mr Hommen writes that ING management failed to adequately gauge the message that awarding these bonuses would send to society. He announced that ING chief executives will not receive any bonuses until the bank has fully repaid the government support it received during the financial crisis.

Last week, the executives' bonuses were published in ING’s annual report. The news sparked outrage in parliament and among trade unions. Finance Minister Jan Kees de Jager announced on Sunday that he will draft legislation barring beneficiaries of state stupport, such as state-funded ING,  from granting bonuses to their executives.  


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