Dutch Mull Tweaking Bank Bonus Cap in Political Tightrope Walk

The Dutch finance ministry is considering easing parts of the country’s limits on variable pay in a move that could be designed to support banks while seeking to mitigate the risk of a public backlash.

One option under review by the ministry is to propose relaxing the cap on variable pay for staff below senior levels of management, people familiar with the matter said. That change would seek to address concerns voiced by many of the country’s banks that the existing restrictions make it harder for them to compete for workers with coveted skill sets such as software developers and engineers, the people said.