Kelly calls on banks to eradicate board bonuses like Rabobank

Sean Kelly MEP has called on European banks to follow the example of Dutch bank, Rabobank, – the first European lender in decades to voluntarily abolish bonuses for its executive board.

“Rabobank has shown leadership by recognising that such bonuses were no longer compatible with the economic situation and the bank’s role in society. It is a strong gesture of goodwill in the face of public opposition that should inspire other banks,” the South MEP said in Strasbourg today.

Rabobank said its move followed a new wage agreement for its 35,000 staff this year which included the abolition of bonuses for all but a small number of traders and IT personnel.

“Thankfully, the EU will cap banker bonuses from next year, so the days of overly excessive bonuses will be no more. However, the cap is up to two times the salary of senior bankers – which is still a substantial amount.

“It would go some way towards restoring public faith in our financial institutions if they demonstrated their understanding of the current economic climate and reflected that with realistic employee rewards schemes and more helpful, sound lending practices to support the communities they operate in,” he added.