The Dutch finance minister said Monday he would consider legislation to limit bonuses paid by financial firms that receive government bailout packages.
The announcement came as financial services giant ING Groep asked its managers to return their 2008 bonuses and confirmed none would be handed out this year.
In a note to parliament, finance minister Wouter Bos said pay packages still reflect "the excesses of the past," further damaging the reputation of institutions at a time when they need public confidence.
"I will investigate which legal measures are possible to force through reduced bonuses," Bos said, and will watch how other countries, including the United States, deal with the issue.
He said he would try to prevent bonuses being paid in 2009, and asked the country's financial watchdogs to pay closer attention to the banks.
At ING Groep NV, the financial services company, incoming chief executive Jan Hommen made a "moral appeal" for his senior staff to pay back their 2008 bonuses, which reportedly amounted to about euro300 million ($406 million).
Hommen said some managers had indicated they were ready to relinquish their bonuses, and that he was asking the top 1,200 managers to return their 2008 bonus payments.
No bonuses were planned for this year, he said, and the group is reviewing its policy on pay packages.
ING already was under fire for handing its new chief financial officer 100,000 ING shares as part of his enlistment package, even though the banking and insurance group took euro10 billion in fresh capital from the government.
In February, ING reported a net loss of euro3.1 billion for the previous quarter and said it planned to cut operating costs by euro1 billion in 2009.
The shortfall was caused by losses of euro1.07 billion at ING's banking arm, mostly due to larger provisions for bad loans, and euro2.04 billion at its insurance arm, primarily because of investments gone sour.
Bos welcomed ING's decision, but said it did not go far enough.
"It's a good start," he told Dutch national broadcaster NOS before sending his letter to parliament "We will announce this week a number of measures and the main rule will be that if you are supported by the government, the tax payer, then there is no room for bonuses."
The three parties of the governing coalition have been struggling for weeks on an agreed rescue plan for the Dutch economy, which is expected to contract by 3.5 percent this year.
