end of salary caps in the Caixa Geral de Depósitos approved yesterday by the Council of Ministers is only the first of four steps that will culminate in a public bank capitalization approved by Brussels. It is at least what awaits the Minister of Finance, who called journalists to explain the extent and the ongoing restructuring process in the CGD . He fled to answer whether the injection of capital will be 4,000 million and also not perspetivou when the bank can start to make profit (until March had 74.2 million of losses ), but pledged to meet the European requirements.
The strategy is to give a direction to the case as if it were a private bank. Starting immediately the issue of remuneration. Mario Centeno know that is an issue “very sensitive”, but argues that must be treated “very seriously”.
“At this time, in CGD, is equal to that which he received in the previous placement, It has no limit. (…) what will be set to CGD is such as is done in any bank. it is easy to understand that the incentive systems are totally evil because they allow the box vice president has a fee monthly much lower than the vowels. that is, people are getting paid not for what they are doing, but what they did in the past, “began exemplify. To the minister, the current scheme does not contribute to the competitiveness of the case. What will then be the decision of the remuneration committee?
“Can you guarantee it will be a decision that will align wages Box wages what it is the banking system in Portugal: neither more nor less “
This is one of the measures. There are four steps to take into account:. Renewal of the board of directors, changes to governance, the business plan and capitalization “They have to be analyzed one by one in this sequence I just said that the whole process is what competition and supervisory authorities established for any bank in the market in any European country. “
” we believe there are internal ways of generating capital in Box. The result of the capitalization is the result for the business plan and governance box. We need to be aware of the following, which is already well: the goal of this action on CGD is the capital that the state has to put there to be seen as an investment because it has to have return. ”
Mario Centeno argues that, for this, the case needs to have a “sustainable and sustained governance, professional”, an appointed board of directors “exclusively” with people whose experience can not be questioned. “This is what the government is betting and that and only that thatcan justify the capitalization effort that the box needs,” he said.
The process is also ongoing with the competition and supervisory authorities European, with the minister to highlight the importance of the process to be completed “with the greatest tranquility and transparency.”
“the timing is not hard, or is set. There are negotiations and ongoing contacts “
Centeno also noted that” there has been public, rather perverted way, the issue of the size of the board “which will be proposed and will be in office in CGD: will have a size smaller than that of other major banks operating in Portugal: 19 members: 7 officers, 12 non-executive. Again, if rescued-examples: BPI is 23: 7 executives; BCP has 20: 7 executives
“Being less in the case, is exactly what is needed to be able to operate all control commissions made by non-executive (…) is an absolutely appropriate number to proósito of. raise standards and what is the effectiveness “of public bank, defended, promising that soon the board’s composition will be announced and will take office as soon as possible.
No comments:
Post a Comment