Bloomberg reports that the proposal, made in a letter to the Dutch parliament Tuesday, also allows banks to claw back payments should workers violate standards or cause big losses. The rules will apply to the entire Dutch finance industry, including insurance companies, Dijsselbloem said.
Dijsselbloem’s caps are more stringent than European Union proposals outlawing bonuses of more than twice fixed pay starting next year. The continent’s politicians are bidding to prevent excessive payouts and curb irresponsible risk taking. While European banks try to limit the number of workers that the restrictions apply to, the Dutch plan covers all employees.
The proposal will make it more difficult for ING, to compete internationally, the company said in an e-mailed statement Tuesday. The Netherlands already limits variable compensation more than other countries, it said.
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