Strict rules on bonuses cost Netherlands Brexit jobs, ING boss says

By Janene Pieters on March 25, 2019 - 12:50
Amsterdam_Zuidoost_ING-Bank_02_PM07
. (ING building in Amsterdam Zuidoost (Picture: Wikimedia Commons/Pieter Delicaat))

The Netherlands could have attracted many more jobs from financial businesses fleeing the Brexit if it wasn't for the country's strict rules on bonuses, according to CEO Ralph Hamers of ING. Dutch law "has a lot of limits", Hamers said, NU.nl reports.

Under Dutch law, bonuses in the financial sector may not exceed 20 percent of the annual salary. This is a lot lower than the 100 percent limit in the European Union. "If you believe that people in the financial sector are stimulated by variable pay, then Amsterdam is not the obvious place to expand to", Hamers said.

The ING CEO acknowledged that the remuneration policy is a "sensitive" topic in the Netherlands, but added that he will continue to make the point that Dutch legislation has negative consequences for the country's competitive position.

ING and Hamers came under criticism last year when the bank announced it wanted to give Hamers a 50 percent wage increase. According to the bank, Hamers earns relatively little when considered internationally. The decision was eventually reversed. 

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