The Dutch government will reduce bonuses at nationalised bank ABN Amro by 65 percent and cap the salaries of members of the management board, Finance Minister Wouter Bos said on Tuesday. In a letter to parliament, Bos said management board salaries would be fixed at 600,000 euros ($858,400). Departure bonuses for leaving executives will also be capped at one year's salary.

There will be no bonuses if the bank is not profitable, Bos said. The new measures came as a row over banker bonuses heated up globally, with Credit Suisse spreading the pain of a UK bonus tax across all staff and Goldman Sachs delaying its annual payouts. The Dutch government nationalised ABN Amro in October 2008. It plans to merge the bank with the also-nationalised Fortis Bank Nederland and privatise the combined institution in 2013 or 2014. By then it will have spent at least 30 billion euros to buy and recapitalise the banks.

Copyright Reuters, 2010