The head of Dutch performing rights society Buma Stemra has stepped down rather than agree to a pay cut under new rules on public sector salaries.

Hein van der Ree said he would not accept changes to the terms of his contract despite the government’s pledge to limit salaries to that of a minister. In an agreement with the board, he will now leave the organisation in February with a pay-off of €480,000.

The pay-off, equivalent to 15 months salary, also breaks new rules on golden handshakes. However, this is in line with Van der Ree’s contract, which was agreed before the new rules came into force, Buma Stemra said.

Van der Ree has worked for the company, which collects royalties on behalf of Dutch musicians, for almost six years. The organisation’s income has risen €14m over that period, hitting €190m last year.