The bonuses in the sector by the bonus ceiling of up to 20 percent of the fixed annual salary “reduced very significantly, ” said Dijsselbloem, but appears to have no negative impact on parts of the Dutch economy and the business climate and competitiveness , he writes in a letter to parliament.
“the perverse incentives that were previously present in variable remuneration by the Wbfo severely restricted,” said Dijsselbloem.
Banks and insurers also have no problem in attracting suitable staff. Dijsselbloem stressed that the report contains only preliminary conclusions, but calls the first impression of the effect in practice “positive”.
The law is effective since the beginning of last year. The government thus claims to have the highest bonus legislation in Europe. The law should avoid perverse compensation incentives by bankers and insurers take unwanted risks.
Exceptions
However, there are exceptions to the rules possible. For example, to attract scarce specialized IT staff or employees who are mainly employed outside the Netherlands. Last year, 28 banks made use of an exception. Not all banks have already submitted their data.
It is not clear whether the exception rule is always applied to the appropriate group. There Dijsselbloem want more information about. He warned the sector earlier that he will tighten the law abuse of the exemption rules.
Also, the minister is not happy with some companies which have offset the reduction of the bonuses of directors with a much higher fixed salary. He says this is difficult to explain to customers “in view of restoring confidence and on bridging the gap between society and the financial sector”
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