The performance bonuses collected by the seven executives for 2010 exceeded EUR1.2 million, with the total pay of members of the management team amounting to EUR4.1 million.
These are the first detailed data on the compensation scheme of a top-ranking bank to be released. In Romania, net salaries of bank heads range between EUR10,000 and EUR30,000 per month, to which bonuses are added, according to existing information.
In line with European regulations, the central bank decided that bankers’ bonuses have to be tied to performance and that cash payments need to be cut. The National Bank of Romania (BNR) forces banks to put off the payment of at least 40% of the variable pay by three to five years, while at least 50% of bonuses have to be granted in the form of shares in the respective bank or other instruments, according to new regulations that came into force at the end of last year.
The data published by BCR concerns the “pay of members of boards holding management positions and personnel whose actions had a significant impact on the risk profile of the lending institution in 2010.” The total pay of holders of management positions exceeded EUR4 million. Overall bonuses granted to bank employees amounted to EUR19 million, equivalent to 17% of gross salaries. Most bonuses, totaling EUR11.7 million, were awarded to retail and corporate personnel in the territorial network.
BCR’s pay package consists of fixed pay (the basic gross monthly salary) and benefits. The variable component is conditional on performance, and is granted annually based on performance indicators and on the evaluation of individual competences.
BCR posted a net profit of 55.4 million lei (around EUR13 million), down almost 77% against 2009, according to Romanian accounting standards (RAS), which require extra provisions to be set up when compared with international financial reporting standards (IFRS). According to IFRS, the net profit was RON732 million (EUR172.3 million). (EUR1=4.25)
(English version by Daniela Stoican, edited by Loredana Fratila-Cristescu)