Dutch government delays ABN Amro listing over executive pay row
AMSTERDAM (Reuters) - The Dutch government said on Friday it had delayed a decision on when to privatise ABN Amro bank over a dispute about executive pay.
Finance Minister Jeroen Dijsselbloem's move comes after the bank's supervisory board decided this week to increase the base salaries of most managers.
ABN Amro was nationalised during the financial crisis of 2008, ultimately costing taxpayers 24 billion euros (18 billion pounds).
The move to boost salaries of ABN Amro executive board members by 100,000 euros each, except for CEO Gerrit Zalm who took no pay increase, led to a testy debate in parliament, which must approve ABN's listing.
The salary increase was technically awarded in 2012 under a previous government and was initially not accepted by the managers. But the reinstatement of the pay rises comes against a backdrop of public disapproval over salaries in the financial industry perceived to be excessive.
In February, a law came into effect capping bonuses in the financial industry at 20 percent of base pay, though that was not at issue in the ABN Amro increases.
In a letter to parliament, Dijsselbloem said he had planned to make a decision about the listing of ABN Amro in the first three months of this year, but was postponing the sale in light of the pay raises.
In a subsequent Tweet, Dijsselbloem's office said there is a "need for more calm before large steps can be taken".
(Reporting by Toby Sterling; editing by David Clarke)
