ING Raises Salary of CEO Hamers by 50 percent

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ING Raises Salary of CEO Hamers by 50 percent
Jaap de Jonge, Editor
Dutch financial services corporation ING received critical reactions for proposing on March 8th, 2018 to increase the salary of its CEO Ralph Hamers by 50% to €3m in 2018.
Newspapers, reflecting the sentiment of the man in the street, are horrified at what they see as pure excess in a calvinistic country. They find most Dutch political parties and Finance minister Wopke Hoekstra on their side. According to them multinational banking and financial services corporation ING is a system bank and was saved with Dutch tax money during the 2008 financial crisis. It is hard to justify such salary increases to the voters / tax payers.
Compensation experts argue the new salary figure is still really low compared to what a comparable bank CEO command in the US or UK. ING said that Hamers has been underpaid for years in comparison with comparable bank CEOs abroad. To attract and keep top executives, it is crucial to offer them competitive renumeration packages.
⇒ Do you think the anger about the salary increase of ING CEO Ralph Hamers is understandable and justified? Or is such anger naive and detrimental, both for ING and the business climate for multinationals in The Netherlands?
Source: Reuters, Mar 8th, 2018.

ING Scraps Plan to Raise CEO Pay
Jaap de Jonge, Editor
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



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