Rijkman Groenink
Rijkman Willem Johan Groenink | |
|---|---|
| Born | August 25, 1949 Den Helder, Netherlands |
| Occupation | Banking executive |
| Known for | CEO of ABN AMRO during 2007 acquisition by RBS, Fortis, and Banco Santander |
Rijkman Willem Johan Groenink (born 25 August 1949 in Den Helder) is a Dutch banking executive, primarily recognized for his role as CEO of ABN AMRO during the 2007 acquisition by a consortium led by Royal Bank of Scotland, Fortis, and Banco Santander.
Early career
Groenink dedicated three decades to the bank. His academic background includes a law degree from Utrecht University and a Diploma in Business Administration from Manchester Business School.
He began his career at the former AMRO Bank in 1974 and advanced rapidly. By 1988, he secured a position on AMRO’s board. Following the 1990 merger with Algemene Bank Nederland (ABN), he joined the ABN AMRO board, managing the Dutch division. In May 2001, Groenink took over as chairman of the board, succeeding Jan Kalff.
Challenges in the United States
Towards the end of 2005, ABN AMRO encountered difficulties within the United States market: LaSalle Bank, an ABN AMRO subsidiary, invested client funds into proprietary investment products without obtaining approval. Additionally, the bank agreed to an $80 million settlement with U.S. regulators concerning transactions involving Libya, and incurred a $40 million penalty linked to irregularities in government-insured mortgage programs.
Divestiture of the bank
In 2007, after a competitive takeover contest, ABN AMRO was acquired by an international banking consortium. Although Groenink preferred an outright acquisition by Barclays, shareholders accepted a higher bid from the consortium. As CEO, Groenink held substantial stock options and profited €23 million from the transaction. This gain drew criticism as an example of executive enrichment; however, supporters highlight his support for Barclays despite their offer being approximately 10% lower.
Following the acquisition, the consortium divided ABN AMRO’s assets: international holdings such as Italian subsidiary Antonveneta and Brazilian Banco Real were allocated to Banco Santander; Dutch retail banking, private banking, and asset management units were transferred to Belgium-based Fortis; remaining international operations became part of RBS.
The award-winning book "De Prooi" ("The Prey") by Jeroen Smit chronicles ABN AMRO’s collapse, depicting Groenink as prioritizing shareholder returns and executive compensation over client interests. Sources indicate that merger negotiations faltered due to his personal approach and conditions frequently related to his own future position post-merger.
Resignation
Although Groenink had publicly backed a Barclays takeover, he resigned as CEO after the RFS consortium secured the acquisition. The transaction took place shortly before the Late-2000s financial downturn, which triggered government bailouts and nationalizations in the banking sector, intensifying discussions about executive bonus practices.
From selling his shares and receiving two years of salary as severance, Groenink obtained roughly €23 million. Media outlets characterized this amount as a golden handshake or exit package.
Additional roles
During his tenure at the bank, Groenink held multiple roles. In 2006, De Volkskrant ranked him 4th among the Most Influential Dutch figures. He also occupied board positions at SHV Holdings, Stadsherstel Amsterdam, Flint Holding, and several cultural organizations.
Shell board nomination
In March 2007, Groenink was nominated to join Royal Dutch Shell’s board to replace Aarnout Loudon. However, concerns were raised that he should prioritize ABN AMRO amid the fierce competition between RFS and Barclays. The prominent shareholder ABP opposed his nomination, criticizing his support for Barclays over RFS. Consequently, on 14 May 2007, just prior to Shell’s annual general meeting, Groenink withdrew his candidacy.
Post-ABN AMRO career
After stepping down and retracting from Shell’s board consideration, Groenink dropped to 29th place on De Volkskrant’s Top 200 influential individuals in 2007. Utilizing proceeds from his bank share sales, he invested in smaller enterprises. In a 2012 interview, he disclosed losing more than one million Euros on his initial investment after leaving ABN AMRO but highlighted later successes with ventures in renewable and sustainable energy sectors.
The 2008 financial crisis had a profound effect on RBS and Fortis. The UK government nearly nationalized RBS, while Fortis was rescued by the Dutch and Belgian governments. Although the ABN AMRO acquisition was not the primary cause of their difficulties, it exacerbated their financial challenges. As a result, the Dutch government took full ownership of Fortis Bank Nederland NV’s Dutch operations, reinstating the ABN AMRO name under state control.
Confident that he was not to blame for the bank’s issues, Groenink offered his assistance to the Dutch government and expressed interest in returning to ABN AMRO in 2008.