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AMSTERDAM, June 18 Dutch state-owned bank ABN
AMRO has increased the salaries of 100 top managers by 20
percent to compensate for new regulations in the Netherlands
that will cap bonuses, the lender said on Wednesday.
Finance Minister Jeroen Dijsselbloem last year proposed
capping bonus pay in the country at 20 percent of annual salary
from 2015, far below a maximum of 100 percent adopted by the
European Union, and he submitted the draft legislation to
parliament last week.
ABN AMRO Chief Executive Gerrit Zalm told business daily
Financieele Dagblad that the increase in his managers' base pay
was needed to retain high-level staff.
"You have to remain competitive in pay, otherwise you will
lose people. It is unavoidable," he said in an interview
published on Wednesday.
ABN AMRO spokesman Hans van Zon said that total pay for the
managers had actually declined this year because the bank had
lowered the maximum bonus pay from 100 percent to 20 percent in
anticipation of the law change.
The increase in base pay does not violate the new
regulations and applied to 100 top level managers from January 1
this year, he said.
The new bonus capping rules in the Netherlands came in
response to what the public widely considered excessive pay
awarded to executives after Dutch banks were bailed out with
tens of billions of euros of taxpayers' money.
(Reporting by Anthony Deutsch; editing by Jason Neely and