Centeno will “align CGD managers salaries with private” – Daily News – Lisbon

Cash will get compensation grid like any other bank. Centeno refusal that 19 officers are many

The end of the wage restraint in the Caixa Geral de Depósitos (CGD) will cover the workers, and administrators, recalled yesterday Mario Centeno. Finance Minister justified the decision to end salary caps in the public bank with the desire to put in the same circumstances than its competitors.

“The goal face to CGD workers is having treatment in terms of salaries and careers in competition with the other banks, “said Mario Centeno a meeting with journalists that served to present the changes to the remuneration system in place for bank management.

the amendments adopted in Wednesday the Council of Ministers come to “align the salaries of the new management of the Caixa Geral de Depósitos with the reality of other banks,” he said. Asked about the salary figures in concrete, Centeno pushed the answer for the future, noting that it will be up to the new remuneration committee decide on the matter, and that the decision “align wages CGD with the reality of the industry.”

in addition to the desire to equalize the pay in the box with the other banks, promoted changes are also in line to end the rules that now apply in public bank remuneration. “The regime [until now in force] CGD allows bank management have a maturity equal to the average wages they received in the last three years, that is, in practice, has no limits,” noted Mario Centeno. “What is establishing is now the principle that compensation is based on what they do in CGD and not for what they did before.”

This system that seeks to change is perverse, according to the minister of Finance. “The incentives in CGD are totally perverse, because they allow the vice president has a monthly income much lower than the other members, as they are paid for what they did in previous years.”

This “does not contribute to competitiveness “and is something that CGD” must change in order to put the public bank as an active and competitive player in a complex market that has to be guided by best practices. ” As the remaining banking, also the public bank will own remuneration grid.

Mario Centeno also took to censor criticism of the size of the new team that will lead the CGD. The new administration of public bank will have 19 directors, seven of which executives. Many seem or many? For the government, are sufficient.

“This information has come to public perversely” he said. He remembered then that the banks comparable to CGD, the teams are even greater. “At BPI, there are 23 directors, of which seven executives, and BCP are 20, of which seven executives,” materialized.

Asked about the entry into the new management team functions and capital needs public bank, the finance minister did not work detail, pointing out that there are several issues still to be resolved by putting them in order: the election of the governing bodies, the change of the corporate governance model, the business plan and recapitalization. The last two points also depend on the new management of the public bank.

Mario Centeno said that there is already an “ongoing restructuring plan in CGD,” admitting that “as the entire European banking” also Box needs to rethink its strategic dimension.

 “The business plan of CGD will obviously have a date and profitability plan associated with that at this time can not advance but whose priority is to put the Caixa Geral de Depósitos the service of financing the economy, something that can only be achieved with a robust database . “