ABN Amro faces potential fine from Dutch Central Bank over bonuses
ABN Amro risks a fine from De Nederlandsche Bank (DNB) over a possible breach of the national bonus cap. The bank disclosed in its annual report, published Thursday, that discussions with the regulator are ongoing, but no formal decisions have been made.
An ABN Amro spokesperson described the issue as a "difference of opinion regarding the Dutch bonus cap" but declined to provide details on the number of cases or the positions involved.
The Netherlands enforces stricter bonus rules for banks compared to most European countries. Under European guidelines, bonuses can be up to 100 percent of fixed salaries, but since 2015, the Dutch cap has been set at 20 percent. For banks still partially state-owned, such as ABN Amro and de Volksbank, bonuses are completely prohibited. Additionally, executive compensation at these banks cannot increase faster than wages set by the industry-wide banking collective labor agreement.
Last year, ABN Amro's supervisory board was blocked by the state when it attempted to raise its own remuneration. At the time, board members expressed concern over what they viewed as stagnating salaries for ABN Amro employees, particularly executives and specialists.
The debate over pay continues, as reflected in the latest annual report. It states that during a November meeting, the bank's remuneration committee once again warned that ABN Amro risks losing talent "given the limitations imposed by the bonus restrictions the bank faces."
