On 23 Oct, 07:07, Sue Veneer wrote:
> http://www.deredactie.be/cm/de.redactie.english/news/081022_fortis
>
> Wed 22/10/08 16:15 (UPDATE video) - The news that Gilbert Mittler, the
> formerFortistop executive, received a 4 million euro golden
> handshake when he resigned from the company, is triggering a wave a
> negative reactions.
>
> Mr Mittler was the architect ofFortis'sfinancial strategy. The
> Belgian-Dutch bank earlier had to be rescued by the Belgian and Dutch
> authorities. The Belgian part of the bank is now owned by BNP Paribas
> of France.
>
> Mr Mittler was the brain behindFortis'stakeover of the Dutch bank
> ABN Amro that led toFortis'sdemise.
>
> Belgian Premier Yves Leterme (Flemish Christian democrat) says he's
> indignant about the size of Mr Mittler's severance payment.
>
> Mr Mittler's 4 million euro payment was intended to compensate him for
> the loss of three years of earnings.
>
> Mr Mittler was not the onlyFortistop executive to benefit from a
> large severance payment. FormerFortisCEO Jean-Paul Votron received a
> payment of 1.35 million euros.
>
> After the rescue ofFortisthe Belgian Government insisted that no
> excessive severance payments should be paid.
>
> Premier Leterme wants to examine whether the money can be recuperated.
>
> Mr Mittler is still working as an advisor toFortis. The Premier also
> wants to find out whether this is still tenable.
>
> On WednesdayFortismade it clear it was ending its co-operation with
> Mr Mittler.
> Trades unions slate payment
>
> Liberal trades unionist Oscar Van Steenbrugge told the VRT that he was
> gob smacked when he heard about the payment. The unions knew nothing
> about it until now.
>
> Mr Van Steenbrugge said that such a payment was not acceptable. He
> added that given the current situation there should be greater respect
> for the company's staff and customers.
>
> He is demanding that Mr Mittler repays the monies.
http://www.deredactie.be/cm/de.redactie.english/news/081024_fortis
Fri 24/10/08 17:33 (UPDATE video) - Hours before the nationalisation
of Fortis Bank by the Belgian state Fortis awarded bonuses to some
1,800 employees working for the Fortis Investment Management (FIM)
division.
FIM is the Fortis division that manages Fortis investment funds. The
company says that it is company practice that such bonuses are
regarded as part of employee salaries.
(AP)
Fortis was nationalised in two stages. Initially Belgium took a 49%
stake in Fortis activities in Belgium. Later Fortis Bank Belgium was
acquired in its entirety by the Belgian state.
Fortis Bank is now being sold on to BNP Paribas of France.
The decision to award a first batch of bonuses was made after Fortis
was partially nationalised in Belgium.
The committee that awarded the bonuses convened on a Sunday, an
unusual practice.
It was on 5 October that the Belgian Government decided to acquire in
its entirety and reached a deal in principle to sell the bank to BNP
Paribas.
"Intended to keep staff"
A Fortis spokeswoman Hilde Junius told the daily De Standaard that the
idea was to calm fears among employees. The bank was worried that
employees would leave taking customers along with them.
The bank noticed that a lot of employees were leaving the company and
felt it was necessary to try and calm fears.
The awarding of bonuses occurred without any consultation with the
authorities.
The bonuses are being paid next March on condition that the employees
still work with the company.
Fortis is underlining that the bonuses are not intended for members of
the management. |