ING Scraps Plan to Raise CEO Pay
Jaap de Jonge, Editor, Netherlands
In the mean time, top Dutch financial services company ING Groep NV (INGA.AS) on Tuesday scrapped the planned 50 percent pay increase for CEO Ralph Hamers, apparently bowing to pressure from politicians and the public.
The company’s announcement last week that it would boost Hamers’ total pay package to just over 3 million euros ($3.7 million) triggered a firestorm of protest from politicians, who are facing national municipal elections next week, as well as reports of customers closing their accounts in protest.
“We as Supervisory Board are responsible for this proposal and regret the commotion caused by it,” Chairman Jeroen van der Veer said in a statement, adding the bank had “underestimated the public response” to the idea.
Finance Minister Wopke Hoekstra on Friday said the government was considering blocking the plan by any means necessary, including passing a law to change it if needed.
“This deals directly with the confidence we should be able to have in the banking sector,” Hoekstra said on Monday. “ING is not a cookie factory, it is a systematically important bank.”
Source: Reuters , Mar 13nd, 2018