Dutch government wants to block 50 pct pay increase for ING's CEO

ING refuses to double the salary of its first executive

Dutch government wants to block 50 pct pay increase for ING's CEO

On Monday Minister Wopke Hoekstra of Finance said that he wanted the salary increase off the table.

Hundreds of customers are thought to have closed their accounts in protest at the pay rise and the proposal to increase Hamer's pay to €3m has been condemned as "arrogant" and "out of touch" by politicians across the political spectrum.

The government "really wants ING to reconsider this proposal", Hoekstra said.

'We realise we have underestimated the public response in the Netherlands on this clearly sensitive matter.

Dutch bank ING has scrapped a planned pay rise of some 50 percent for its CEO after it sparked a storm of criticism.

Even after the increase, Hamers' pay would have been below the average for heads of large banks and in line with packages for Dutch blue chip CEOs. "This undermines the confidence in banks as a whole and in ING in particular", he said.

Successive governments have tried to limit financial sector pay since the financial crisis, limiting performance bonuses, for example, to 20% of base salaries.

ING, which published its annual report and agenda for its annual meeting last week, must now wait until 2019 before proposing any new pay package for Hamers - which shareholders must approve.

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