Ex Fortis chief could get 5 million euro payout

Herman Verwilst, who resigned as the acting CEO of Dutch-Belgian financial services group Fortis on Friday, is entitled to an exit package of over 5 million euros. A spokesperson for Fortis confirmed the deal saying: "He has not been paid out yet, but it is his contractual right."

Verwilst (61) was the acting CEO of Fortis for exactly 78 days. During that period the company lost 45 percent of its share value. Verwilst is staying on as non-executive director, which will pay him at least 130,000 euros a year.

According to Fortis' annual report, his exit package should include "a maximum of three years salary in cash". Verwilst claimed a basic salary of 695,000 euros and an annual bonus of 1 million euros in 2007.

The pay-out should be made "if Fortis ends the contract prematurely" but there will not be compensation if the termination is "the result of grave negligence or deliberate misconduct", the document says.

Verwilst was Fortis' deputy CEO for six years. In July he replaced Jean-Paul Votron who resigned after facing heavy criticism for not keeping shareholders up to date about the bank's financial situation following its 24 billion euro purchase of parts of ABN Amro.

Jean-Louis Duplat, former head of the Belgian financial sector watchdog, said in Belgian newspaper De Standaard that "all bonuses relating to the ABN Amro takeover should be refunded".

Verwilst's exit package is painful for both Belgian and Dutch politicians. The Belgian, Dutch and Luxembourg governments injected a total of 11.2 billion euros into Fortis this weekend after its share price came under pressure.

Belgian prime minister Yves Leterme contacted the Fortis board on Tuesday objecting to the deal. "We asked that they revise the amount", a spokesman for Leterme said. "But we are cautious because these are contractual agreements."

Dutch finance minister Wouter Bos said on Tuesday he will talk to Fortis executives shortly.