ING Groep NV (INGA)’s board weren’t paid a bonus for a fifth consecutive year in 2013, while managers of the U.S. insurance unit it sold in an initial public offering were awarded 21.6 million euros ($30 million).
Five executives of the U.S. unit received the bonuses, partly linked to the share sale, according to calculations based on the Amsterdam-based company’s annual report published today. ING Groep Chief Executive Officer Ralph Hamers received 794,000 euros in salary last year and won’t get a raise or a bonus in 2014 because the biggest Dutch financial-services company hasn’t fully repaid a 2008 government bailout.
ING’s top executives have had their bonuses curtailed, while their fixed compensation has been unchanged since 2010 after the Netherlands adopted a ban on variable compensation for institutions receiving state aid. The country plans to cap bonuses to a fifth of wages, in legislation more stringent than European Union rules scheduled to take effect next year that will restrict bonuses to more than twice fixed pay.
The bonuses awarded to ING’s U.S. insurance executives were in cash and deferred shares. ING’s executive board, including former CEO Jan Hommen who stepped down in October, received a combined 3.3 million euros in salaries.
The company said that as of Dec. 31, its executive board’s compensation is “far below the median” of companies in the the Euro Stoxx 50 Index (SX5E) it considers as a benchmark. The limits “may restrict our ability to offer competitive compensation compared with companies that are not subject to such restrictions,” the company said.
The limits don’t apply to the U.S. unit ING is divesting to comply with the terms of its 2008 bailout. The Dutch company sold shares in the unit in an IPO last May and in October. This week, it raised $1.18 billion with a sale of 26.5 million shares, losing its majority stake. The U.S. executives were granted one-time incentives of 8.37 million euros for executing the IPO, ING said.
ING U.S. CEO Rodney Martin received total 2013 compensation of $11.9 million, according to a prospectus dated March 18. His fixed salary was $1 million.
Aegon, the Dutch owner of U.S. insurer Transamerica Corp., said CEO Alex Wynaendts was awarded 1.03 million euros in conditional variable pay for 2013, in its annual report today. That compared with 1.02 million euros over 2012. His fixed compensation was unchanged at 1.05 million euros.
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