Law to scrap bank bonuses with state aid

20th March 2011, Comments 0 comments

Banks receiving state support will be barred from paying bonuses under a draft law due to be presented later this spring, Finance Minister Jan Kees de Jager has announced.

Earlier this week parliament voiced outrage at news that ING head Jan Hommen had received a bonus of 1.25 million euros while the bank still owes the state billions it received to avert bankruptcy. Mr Hommen received the bonus after ING posted gains this year. The bonus represents 92 percent of his regular salary of some 1.35 million euros.

Interviewed on television, the finance minister said the bonus met current guidelines but was excessive in view of salary developments and sacrifices demanded of most employees to reduce the budget deficit.

Speaking in the same programme, former ING executive Cees Maas pointed out that staff pensions had been frozen and salaries were to grow by just one percent as part of budget cuts. Seen in this light, Mr Hommen's bonus, he said, was "not really justified". cl

© Radio Netherlands Worldwide

© Radio Netherlands Worldwide

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