Dutch Parliament discusses strict curbs on remuneration in Dutch financial sector (including Europe’s toughest bonus cap of 20%)
Further to our alerts of 28 November 2013 and 15 July 2014, we can report that the proposed strict remuneration curbs (including Europe’s toughest bonus cap of 20%) were discussed in Dutch Parliament today.
The new rules are set to apply to financial undertakings seated in the Netherlands as well as to all of their subsidiaries in and outside the Netherlands (extra-territorial effect).
Dutch political parties will be submitting various amendments to the new rules shortly, amongst which amendments aimed at imposing fines for non-compliance exceeding the current levels of €1 million, €4 million and €8 million.
The proposal including amendments will then be put to vote in Dutch Parliament and sent to the Dutch Senate to consider and finalise.
The Dutch government is still steering towards 1 January 2015 as the effective date of the new rules.
To read more about the proposals, please click here for details and FAQs on the new rules and their scope in general and on the 20% bonus cap, its limited and complex exceptions and the proposed maximum severance payment in particular.
We will continue to closely monitor this and keep you abreast of relevant developments as they appear. In the meantime, please contact us if you have any queries.