GBD: Government tries to avoid rescissions million – dollar business Newspaper (press release)

Finance recommend integration of James Ravara Marques and Pedro Leitão in the CGD group instead of payment of 2 million euros.

Jose Manuel Ribeiro/Reuters

The list of executive directors of Caixa Geral de Depósitos (CGD), announced this week after the endorsement of the ECB, it does not include two of the team members António Domingues – James Ravara Marques and Pedro Leitão. Which means that until the next day February 1 will have to exit doconselho of directors of the bank. This is the most sensitive issue that the new administration, led by Paulo Macedo, has to solve. Is that it is the CGD that has to pay the damages, if administrators have out of the functions for which they were appointed.

As the mandate ends in 2019, and the annual salary of each, the gross, is of 337 thousand euros per year, CGD will have to pay each slightly above one million euros for leaving before the end of term. An invoice of € 2 million in the CGD (in personnel costs) is something that is not well seen by the Government, that you know that you can create public rhetoric, since the State is about to inject 2.7 billion euros in a capital increase in cash in the bank.
a Source close to the process told the business Newspaper that "the Government has already asked the new administration led by Paulo Macedo that you evaluate the possibility of these administrators come to occupy suitable positions in the CGD Group, as the case may be in the interest of both parties". The business Newspaper knows that one of the two administrators may, for example, be offered the position of administrator or chairman of Caixa Banco de Investimento.

In any case, the conditions for the termination of the administrators that were chosen by the previous chairman António Domingues, will be set by the Remuneration Committee of the GBD, a regulatory body responsible for the fixing of the remuneration of the members of the corporate bodies, as well as by the fixing of the compensation to which they may be entitled for early termination of functions.

According to a release this week of Finance, come into the CGD on the next Tuesday Rui Vilar (chairman of the board of directors); Paulo Macedo (executive committee chairman); Francis Cary (who has already resigned from the post of administrator of the New Bank); John Tudela Martins; José de Brito (CFO); José João Guilherme, Maria João Carioca and Nuno de Carvalho Martins. For a term up to 2010. Until the end of the month, leaving James Ravara Marques and Pedro Leitão.

As to the Recapitalisation Plan, the Center will advance with about 3.4 thousand million euros of impairment for loans and other assets in CGD, detected by Deloitte at the request of António Domingues. The operation will be made at the close of the accounts for 2016, which will begin to be prepared so that, by resolution of the Ministry of Finance, the new administration is named. This will lead to CGD damages of nearly $ 3 billion at the end of the year.

The office of Centeno says that, following the completion of the appointment of the executive directors, will be submitted to the ECB, and subject to, the process of assessment of suitability and appropriateness, the non-executive directors. Will be eight that lack approve. If so it will be in total 16 officers, nine of which with non-executive roles.