'You have to offer competitive remuneration, otherwise you are eroding your bank', Chief Executive Officer Gerrit Zalm said in an interview with Het Financieele Dagblad. 'It’s inevitable'.
Bloomberg News reports that Dutch Finance Minister Jeroen Dijsselbloem last week proposed legislation limiting bonuses at banks and insurers to 20% of fixed salaries from next year, more stringent than European Union rules banning bonuses exceeding twice fixed pay.
ABN Amro is compensating its managers, who can get variable pay equivalent to fixed salaries under current rules, by raising salaries by a fifth from January 1, 2014, according to Hans van Zon, a spokesman for the bank who also confirmed Zalm’s comments.
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