Wednesday, August 5, 2020

Which banks cut board remuneration in the crisis

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London More and more top bankers in Europe are foregoing salary or bonuses in the corona crisis. The British big banks also gave up their resistance this week. HSBC, Barclays, Lloyds, RBS and Standard Chartered announced millions in donations for various Corona aid funds.

The largest single sum comes from RBS boss Alison Rose. She waives 25 percent of her salary for the rest of the year and receives no cash bonus. That’s a total of around £ 2.3 million. Barclays boss Jes Staley’s contribution, on the other hand, is significantly lower. This gives up just 33 percent of his salary for six months – a sum of £ 392,000. With the bonus, however, he makes no compromises.

The institutes act under pressure from bank supervisors. “PRA does not expect banks to pay cash bonuses to management,” PRA chief Sam Woods said last week. The European banking regulator Eba had also asked all institutes to set management board remuneration at a “conservative level”.

The head of the board of directors, Ana Botin of the Spanish bank Santander, set the example on March 23. The Spanish BBVA and the Italian banks Intesa Sanpaolo and Unicredit followed last week. With the gesture of the British institutes, the pressure on banks in Switzerland and Germany is increasing. So far, these have been preventing a waiver.

Selected major banks have previously announced this:

Santander: Chairman of the Board of Directors Ana Botin and CEO Jose Antonio Alvarez waive 50 percent of their total compensation for 2020, i.e. fixed salary and bonus. The rest of the Board of Directors waived 20 percent.

Intesa Sanpaolo: CEO Carlo Messina donates one million euros to Corona relief funds. 21 other top managers who report to him donate a total of five million euros.

Unicredit: CEO Jean-Pierre Mustier and seven other board members waive their cash bonuses for 2020.

HSBC: Chairman Mark Tucker donates his entire annual salary of £ 1.5 million. CEO Noel Quinn and CFO Ewen Stevenson waive 25 percent of their fixed salary for six months and receive no cash bonus. Quinn has around £ 1.4 million and Stevenson £ 800,000.

Barclays: Chairman Nigel Higgins, CEO Jes Staley and Chief Financial Officer Tushar Morzaria waived 33 percent of their salary for six months. However, bonuses are paid. In total, all three managers donated a total of £ 800,000.

Standard Chartered: CEO Bill Winters donates 50 percent of his salary by the end of the year and his cash bonus for 2020 – a total of over two million pounds. CFO Andy Halford and board members also waive. However, the amount is unclear.

Lloyds: CEO Antonio Horta-Osorio and other managers waive the full bonus, both cash and stock options. However, they get their full salary.

RBS: Chairman Howard Davies and CEO Alison Rose waive 25 percent of their salary for the rest of the year and receive no cash bonus. RBS was saved by the state in the financial crisis and is still majority state-owned.

UBS: The Swiss bank announced on Thursday that it would pay its dividend in two tranches this year. Should the second tranche fail in autumn due to the corona crisis, the cash bonus for the board members will also be canceled, the bank said. Additional remuneration decisions will be made “as required” in the course of the year.

Credit Suisse: CEO Thomas Gottstein told Swiss radio last week that the board is considering a gesture of solidarity.

Deutsche Bank: So far, the board members have kept a low profile, it just says “one is aware of the overall situation in business and politics.”

Commerzbank: The board members have not yet waived their variable remuneration.

More: Because of the corona crisis: More and more board members are foregoing part of their salary

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