The time is ripe for a reform of executive pay packages, Rijkman Groenink, the former CEO of ABN Amro says in an interview with the Financial Times.
Groenink said a ‘unique opportunity’ has arisen to forge a global consensus on linking risk and reward.
‘And he is hopeful that regulators and governments around the world can agree on banning bonuses on speculative trades that might later lead to huge losses. But the wider issue of limiting absolute pay would probably prove too difficult,’ the FT said.
Asked about his own €30m severance package when he left the Dutch bank Groenink said: ‘I fully appreciate the views of many, many people about excessive compensation but in this case it’s not linked to high-risk, high-reward bonuses at all.’
That money was paid for by the shareholders of RBS, Fortis and Santander, which bought ABN Amro for €71bn in 2007, he said. ‘Under those circumstances, I had no qualms in accepting the money,’ the FT quoted him as saying.
For the full interview, click here
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