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Dutch adopt new bank bonus rules | Dutch adopt new bank bonus rules |
(41 minutes later) | |
Dutch banks have adopted a new code of conduct, which will include capping bonuses and making sure they can be clawed back in the future. | Dutch banks have adopted a new code of conduct, which will include capping bonuses and making sure they can be clawed back in the future. |
Dutch Finance Minister Wouter Bos welcomed the voluntary code and said that it would be enacted into law. | Dutch Finance Minister Wouter Bos welcomed the voluntary code and said that it would be enacted into law. |
He added that the rest of the world should use the rules as a model for their own banking sectors. | He added that the rest of the world should use the rules as a model for their own banking sectors. |
Executive bonuses will be capped at 100% of salary and redundancy pay will be limited to one year's salary. | Executive bonuses will be capped at 100% of salary and redundancy pay will be limited to one year's salary. |
'Integrity and care' | 'Integrity and care' |
The code of conduct was adopted by the Netherlands Bankers' Association (NVB) and will apply to all bankers based in the Netherlands from 1 January 2010. | The code of conduct was adopted by the Netherlands Bankers' Association (NVB) and will apply to all bankers based in the Netherlands from 1 January 2010. |
All members of banks' executive boards will have to sign a declaration on moral and ethical conduct, including a promise to "perform my duties as a banker with integrity and care". | All members of banks' executive boards will have to sign a declaration on moral and ethical conduct, including a promise to "perform my duties as a banker with integrity and care". |
The Dutch government was among those that pumped billions of euros into their banks. | The Dutch government was among those that pumped billions of euros into their banks. |
It nationalised the Dutch assets of Fortis Bank. | It nationalised the Dutch assets of Fortis Bank. |
There has been much discussion, including among G20 ministers, of whether bonus structures encouraged bankers to take excessive risks, bringing about the banking crisis. | There has been much discussion, including among G20 ministers, of whether bonus structures encouraged bankers to take excessive risks, bringing about the banking crisis. |
Mr Bos said he planned to take the new rules to the G20 summit in Pittsburgh later this month as an example of what could be done. | Mr Bos said he planned to take the new rules to the G20 summit in Pittsburgh later this month as an example of what could be done. |
Bonus disagreements | |
French banks have already agreed to bring in a new system of performance-related pay, amid pressure to curb excesses. | |
Its banking federation said there would be penalties for those who lost money, as well as rewards for success. | |
In the UK, a new code coming into effect next year will say that bonuses should not be guaranteed for more than a year and that they should be spread over three years. | |
But it is unclear whether the UK government favours a cap on bonuses, with Chancellor Alistair Darling saying that would need global agreement, while Prime Minister Gordon Brown says that ways of limiting bonuses must be explored. |
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