CGD's salaries increased in 2019 with the start of bonus payments

CGD's management salaries grew to 3,6 million euros last year, an increase of 22,5% justified by the start of a program for the payment of variable remuneration, which was already planned, the bank revealed.

Cristina Bernardo

In the 2019 management report, published today at the Securities Market Commission (CMVM), it can be read that, overall, eight directors were entitled to bonuses, for a total of 375,9 euros, an amount that caused the value of the Board of Directors' remuneration to rise to 3,6 million euros in 2019, compared to the 2,9 million euros allocated in the previous year, which can be consulted in the 2018 document.

In the report, the group explains the attribution of remunerations with the lines defined by the EBA (European Banking Authority) and with the fulfillment of the strategic plan 2017-2020.

"The CGD [State] shareholder decided, in June 2019, on a proposal from the CGD's General Meeting Remuneration Committee (CRAG), to attribute to the Executive Directors, for the financial year 2018, variable remuneration", said the bank, in the same report.

However, “in compliance with CGD's remuneration policy, and in accordance with the EBA 'Guidelines on Sound Remuneration', 25% of this remuneration was paid in cash in November 2019 and 25% will be paid, in cash, in five installments annual rates between 2020 and 2024 ”, the document reads.

“The remaining 50% of the remuneration was paid in kind, through an instrument deferred for a period of five years, with its settlement being conditioned to the evolution of the implementation of the Strategic Plan 2017-2020”, said the bank.

“Compliance with the remuneration in kind component is carried out through the issuance of commercial paper, in accordance with the applicable legal and regulatory framework. These remunerations will be subject to IRS at the mandatory rate that is estimated on average to be the maximum rate in force at 48% ”, indicated CGD.

The 2018 report has similar information, realizing that the bonuses for 2017 would start to be paid in 2019.

Paulo Macedo, president of Caixa's Executive Committee, received a bonus lower than that estimated in the 2018 management report, and CGD reports a variable remuneration of 61,6 thousand euros, paid in November, which is below more than 67 thousand euros expected in the previous year.

Adding Macedo's fixed remuneration value of 423 thousand euros last year, which was unchanged, the manager received 484,6 thousand euros of gross salary in 2019.

In the report for 2018, the forecast for the payment of bonuses pointed to two values, to be paid in March and December, which totaled 67 thousand euros.

Paulo Macedo should now receive 12,3 euros in every month from November to 2024.

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