MPs largely welcome bank bonus deal

MPs have largely welcomed the deal reached between finance minister Wouter Bos and the financial services sector on moderating bonuses.

Bos reached a ‘gentlemen’s agreement’ with banks and insurance companies on Monday in an effort to restore public faith in the financial services sector.
The agreement comes after mounting disquiet about bonuses paid out by banks which have had government cash injections. Bos has said he was ‘angry and frustrated’ by the banks’ behaviour.
Monday’s deal means that banks are committed to pursuing a ‘sustainable and moderate reward policy’, news agency ANP reported.
Pay rise limits
Bankers have also agreed to do away with a bonus system which encourages bankers to take ‘irresponsible risks focused on the short term and shareholder value’, ANP said. And banks and insurance companies have also agreed that pay rises for executives will not exceed those paid to the rest of the staff.
‘It looks reasonable. I hope that the fuss around bonuses is now over,’ said CDA MP Frans de Neree. Labour MPs also welcomed the deal but said the central bank would still need to be vigilant.
But left-wing MPs said that Bos had not gone far enough. ‘It could have been a bit tougher and it is vague about the limits to performance-related pay. It is a minimum package,’ GroenLinks MP Kees Vendrik told news agency ANP.

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