Germany: Government blocks Commerzbank bonus plan
May 1 , 2015
Commerzbank’s plan to pay its top executives bonuses worth double their basic salaries has been blocked by the German government.
A motion put forward at the annual meeting of the bank needed the support of 75% shareholders, but only 64.7% voted in favor of the plan. The German government used its voting stake of 17% to vote against the motion.
The government had rescued Commerzbank in 2008 following the financial crisis. According to new EU rules, shareholder approval is required for bonus plans exceeding the staff’s base salary.