ABN Amro Fined Heavily Over Bonus Payments
ABN Amro has been fined 15 million euros by the Dutch central bank for awarding bonuses to senior executives, despite a 2012 ban on such payouts at state-owned banks. Regulators expressed particular concern that the bank resumed the practice despite prior warnings.
The regulatory authority, De Nederlandsche Bank (DNB), described the case as a «serious violation.» The purpose of the bonus ban for state-owned banks is to prevent government aid or revenues earned from it from ending up in the pockets of top bank executives.
The law was introduced in 2012 for board members and has applied since 2015 to certain senior managers just below the executive level—the so-called «second tier.»
Warning Ignored
According to the DNB, between 2016 and 2024, ABN Amro paid a total of 1,5 million euros in bonuses to seven second-tier managers. In addition, one executive received two salary increases that significantly exceeded the standard wage levels, which were also prohibited. The 15 million euros fine was determined based on current regulatory guidelines. Given the size of the institution, the amount is deemed «appropriate and justified.»
The supervisory authority had previously alerted ABN Amro to its illegal bonus policy. The bank initially suspended the practice but later resumed it and even awarded new bonuses. In doing so, it violated direct instructions from the regulator. The DNB considers this a severe infraction and attributes an increased level of culpability to the bank.
Misjudged Interpretation
«A professional market participant and licensed bank such as ABN Amro is expected to be aware of and comply with the applicable laws and regulations,» the regulator stated.
ABN Amro has accepted the fine. The bank said it had «interpreted and applied the legislation in good faith,» but acknowledged that «this assessment was incorrect.»
On the Verge of Collapse
ABN Amro was nationalized during the 2008 financial crisis after it was on the verge of collapse, prompting the Dutch government to intervene. Since 2015, the government has gradually reduced its stake in the bank, but still holds a 30 percent share.
