Cap on high salaries raises directors’ hackles

no image
No image availableNL Times

Supervisors and directors from different sectors say that the new law to reduce top incomes in the public and semi-public sectors is being introduced too quickly.

According to a legislation proposal by Minister Plasterk, from next year salaries can amount to a maximum of 144,108 euro, including vacation and year-end bonus. Plus expenses and pension contributions that amounts to 169,425 euro per year.

Like Plasterk, the PvdA wants to implement the plan on January 1st, but coalition partner VVD questions the date.

Representatives from healthcare, housing associations and universities think that the law will lead to the decline in quality of top executives. They worry that the good people will run away to the business community or move abroad. They are therefore asking the Chamber to properly evaluate the reduction before deciding.

According to Chairman Yvonne van Rooy of the Dutch Association of Hospitals, the work of a minister is not comparable to that of a director. "I was a minister myself, and then director. There I wear much heavier responsibility. A ministry is run by a Secretary-General." Van Rooy was a state secretary for the Ministry of Economic Affairs in the late 80's and early 90's.

The SP strongly opposes the arguments of the directors.