Rijkman Groenink, outgoing chief executive of ABN Amro, was granted a $6.2 million severance package by Royal Bank of Scotland.
Groenink’s share options, amounting to $37.6 million are in addition to the severance package which includes a bonus and 22 months salary. Financial analysts have condemned the pay-out, indeed one critic told the Financial Times it was a “complete disgrace”.
Under the guidance of Groenink, the bank expanded further into Europe, South America and the US but growth stalled. Poor share performance led to the interest from active investors to call for the break-up of the bank or the sale.
An RBS consortium eventually won the battle to buy the bank after fighting to the finish line with Barclays. But RBS, Santander and Fortis won by paying $100 billion and employing a break-up strategy. The group then decided to replace Groenink at a shareholder meeting with Mark Fisher.