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It has been suggested that outgoing Randstad CEO Ben Noteboom was paid an additional €2.5 million to terminate his contract based on figures published in the company’s recent annual statement, reports rtlnieuws.nl.
Following 11 years of service, it was announced in November last year that Mr Noteboom will step down at the end of February 2014. During his final year as company CEO, Mr Noteboom reportedly earned a base salary of €970,000, received a short-term bonus of €727,000, a share bonus of €911,000, and received a pension contribution of €258,000.
In total, he earned €2.9 million, which, in addition to the so-called exit fee, takes Mr Noteboom’s remuneration to €5.4 million, more than double what he earned the previous year.
The VEB (‘Association of Dutch Shareholders’), a group which lobbies on behalf of Dutch shareholders, expressed their amazement at the exit fee: “It seems that the departure of Mr Noteboom is not voluntary, but we are not aware of a conflict or anything.”
A spokesman for Randstad advised that the additional payment of €2.5 million is due to contractual obligations: “There is a one year notice period and severance pay for a year.”
Randstad added that it was adhering to its code of conduct for good governance. However, when asked by rtlnieuws.nl to explain how the figure of €2.5 million was calculated if Mr Noteboom’s base salary was €970,000, the Randstad spokesman was unable to comment.
While the VEB may be amazed by the sum, the outgoing Chairman has managed to double the price of Randstad’s shares over the past fifteen months which, no doubt accounts for part of his increased bonus.