The outgoing board of MPS
The outgoing board of Monte dei Paschi is a candidate for a partial reconfirmation and underlines, however, how the current remuneration policy is “inadequate“. This is what emerges from the documentation filed in view of the next meeting April 20thwhich among other things will have to renew the board of directors.
“Inadequate Compensation”
In the document entitled “Guidelines from the board to shareholders on the size and composition of the new board” reads, inter alia, an assessment of “inadequacy” for fees paid by the bank following a recapitalization from 2.5 billion. The president collects 110 thousand euros gross per year, the directors 65 mila.
The commitment required
“The current remuneration foreseen for the assignment is inadequate – the document reads – in consideration of thevery high commitment of time required to complete it adequately and the comparison with other comparable institutions, and does not contribute to favoring the attractiveness of the bank for the better professionalism“.
The text does not detail which competitors in the sector are referred to for remuneration. The board adds that it has estimated the time commitment necessary to carry out “correct” the assignment in 200 days per year for the figure of president e in 50-60 days the year for the director “without counting”, obviously, “the commitment in the committees”.
“Ensuring Continuity”
Il outgoing board there is also a sort of self-candidacy for at least partial reconfirmation. In fact, the document states that the current board of directors “hopes” that “to guarantee stability e continuity of action to the activities of the Body, in this particular phase of the life of the Bankthe confirmation of a part of the current components is evaluated on the basis of the active contribution provided to the Board’s work during the term of office”. The bank president Patricia Griecohas already announced that it is not available for a new mandate.
The knot of Lovaglio
The issue of remuneration had emerged in recent months in relation to the position of the CEO Louis Lovaglio. A standard included in the budget law in fact, it has cut the remuneration of the top management of some state-owned companies. If also applied to Mpsthe rule would have had the effect of halve in fact the manager’s fee.
In early February though sources of the Mef have made it known that the rule in question does not apply to Mps. In September, theShareholders’ Meeting had voted a number of changes to the statute to eliminate the age limits and in fact make it possible for the reappointment of Lovaglio come CEO.