The world of big-money executive bonuses is one that most of us can only dream of, but it was the subject of a recent opinion by the Illinois Appellate Court. The First District held that under the Illinois Wage Payment and Collection Act, ABN Amro Inc. could not deny a former executive a $2-million bonus simply because he had no written compensation agreement. (Robert D. Schultze v. ABN Amro, Inc., 2017 IL App (1st) 162140)
Robert S. had held various executive positions with ABN subsidiary LaSalle Bank since 1983. He earned his salary and bonuses under an oral employment agreement. If Robert and his team met certain performance goals, he could expect to receive a multiple of his salary as a bonus.
In 2007, ABN promoted Robert to managing director and chief operating officer of Global Markets North America Division. He was then asked to manage the $21-billion sale of LaSalle to Bank of America and the $93-billion sale of ABN to Royal Bank of Scotland and two other banks, as executive lead of the ABN North America Transition Leadership Team.
Based on the bonuses paid to his predecessors in the COO job combined with his significant added responsibilities, he expected a bonus of $2-$5 million for 2008. When he learned in March 2009 that his 2008 bonus was only $200,000, he objected as the amount was not in proportion to the responsibilities he had assumed, and was much lower than his recent annual bonuses. Continue reading ›