The Dutch Finance Minister Wouter Bos has slammed the pay and perks deal being offered to the man expected to become the new chief financial officer of the banking and insurance group ING.
Bos says he is greatly frustrated that Patrick Flynn is to be given 100,000 ING shares, which are worth about EUR 400,000. Their value may rise in coming years, but ING have set a EUR 1.3-million ceiling on the cash that Flynn can make from them.
Shareholders will vote on the appointment of the 48-year-old Flynn as CFO at a shareholders meeting on April 27, according to the financial news agency AFN.
The ANP news agency quotes Bos as saying the share bonus will 'further damage' the reputation of the financial services sector.
Bos is furious that ING, which has received billions of euros in government bailouts, is now announcing another mega-pay deal.
The Dutch government put up some 10 billion euros in an ING bailout and agreed to guarantee 80 percent of the group's mortgage portfolio in the United States. Bos said he hoped that ING's new salary system, which will be introduced next year, will end such practises.
Despite his frustration, Bos says there is little he can do. He is, however, setting up a meeting with all the Netherlands' top bankers within the next two weeks to discuss their pay policies.
Edited by Julian Isherwood