This Government Plans To Limit Banker Bonuses To 20% Of Base Salaries

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As the European Union moves to cap bankers’ bonuses at twice fixed pay, the Netherlands is considering even tougher measures amid a public backlash against the industry.

Bloomberg reports that after paring bonuses for top banking executives to 100% of annual salaries in 2010, the Dutch government plans to limit bonuses to 20% percent of wages across the industry.

At the center of the campaign is Dutch Finance Minister Jeroen Dijsselbloem, who was appointed head of the eurogroup of finance ministers in January. Dijsselbloem, like peers elsewhere on the continent, and his Labor Party are concerned they’re losing the support of voters as taxpayers foot the bill for hundreds of billions of euros in bank bailouts.

'Remuneration in the banking industry is still structurally higher than in other, comparable sectors, which is incomprehensible in light of the situation we are in and the amount of public money spent on keeping this industry going since 2008', Dijsselbloem told lawmakers in The Hague last month.

Hit the link below to access the complete Bloomberg article:

Dutch Bonus Cap Tougher Than EU’s as Bankers Put on Notice

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