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Do you think Fortis CEO Karel De Boeck deserve euro 800,000?

By Amarendra Bhushan for CEOWORLD Magazine Updated:November 19, 2008

Fortis, once the largest bank in Belgium and the Netherlands, said Wednesday it would pay its new chief executive an annual salary of euro800,000 (US$1 million) and possible bonuses — adding fuel to a row over big pay packets at financial groups getting government help.

The company is now a stripped-down insurer that made a third-quarter loss of euro135 million (US$171 million) after the credit crisis forced it to sell off its core banking and insurance operations to the Dutch, Belgian and Luxembourg governments and French bank BNP Paribas at fire sale prices.

But the company is making little effort to calm the storm, saying Wednesday that Karel De Boeck, the fourth Fortis CEO this year, will keep a salary of euro800,000 that he already earns as an executive at the bank and will receive bonuses based on future cash flow.He won’t get stock options or a sign-on bonus but will receive expenses and a company car.

In another news Fortis publishes the shareholder circular in preparation of the upcoming General Meetings of Shareholders

Fortis published this morning the shareholder circular in preparation of the upcoming General Meetings of Shareholders of 1 December (in Utrecht for Fortis N.V.) and on 2 December (in Brussels for Fortis SA/NV). The document complements the set of documents at the disposal of shareholders for the General Meetings.

This document aims to provide comprehensive background information amongst others on the recently announced transactions that were concluded with the governments of Belgium, The Netherlands and Luxembourg and with BNP Paribas.

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