Van Lanschot Kempen has become the latest Dutch bank to come under fire for plans to raise its senior executives’ pay by a double-digit margin.
The bank is due to recommend a 20% increase in CEO Karl Guha’s wage packet at its shareholders’ meeting on May 31, in the form of shares and pension contributions. It would take Guha’s total remuneration to €1.5 million.
The bank’s other three executive board members would also receive pay rises to take their annual income over the €1 million mark. The bank says the move would bring its salaries in line with its competitors.
Van Lanschot Kempen, based in Den Bosch, specialises in wealth management for many of the Netherlands’ richest citizens. Although it is one of the smallest AEX-listed companies, with 1,685 employees and total capital reserves of €14.7 billion, it says its status means it needs to be able to compete with major Dutch firms such as ING bank, insurance company Nationale Nederlanden and chemicals firm DSM.
In a statement the bank said that the high increases were justified by ‘the successful transformation to a specialist wealth manager, with good to very good financial results’.
However, institutional investors’ group Eumedion questioned whether the proposal ‘would help to restore society’s trust in the financial sector’.
Thank you for donating to DutchNews.nl
The DutchNews.nl team would like to thank all the generous readers who have made a donation in recent weeks. Your financial support has helped us to expand our coverage of the coronavirus crisis into the evenings and weekends and make sure you are kept up to date with the latest developments.
DutchNews.nl has been free for 14 years, but without the financial backing of our readers, we would not be able to provide you with fair and accurate news and features about all things Dutch. Your contributions make this possible.