NBR sets its sights on bankers' salaries: payments of above 1m euros, to be reported
The National Bank is to collect information on payments of above
1m euros made by banks, which it will report further to the
Committee of European Banking Supervisors.
The modifications, included in a law modifying Ordinance 99/2006,
regulating banks' operations, come amid the rising pressures
internationally to review banker compensation system.
The outlook of some fat bonuses related to their achieving some
highly ambitious targets on the short term have made bankers take
on too high risks in the past years, which eventually led to the
financial crisis of 2007-2008. Moreover, banks further granted high
bonuses during crisis years, though many of them had asked for the
state's support or were even nationalised to be saved from
bankruptcy, thus stirring taxpayers' anger.
At present, the fixed monthly salary a boss of a top five bank
domestically stands at 40,000 euros net, to which the annual bonus
is added, which in a multinational can account for even 100% of the
annual salary. Thus, annual incomes are likely to climb above the
1m-euro per year threshold in top banks.