- Provocative salaries for the “golden boys” of the banking sector at a time when the wave of staff departures and branch closures continues in order to reduce operating costs.
- How salaries are structured by the banks for the CEOs.
- What the voluntary redundancy schemes at Piraeus, Alpha Bank foresee.
- Over the past decade, 20,990 jobs have been lost and 1,416 branches have been closed, according to official data from the Hellenic Banking Association.
Data Journalists
At a time when the reduction of staff in the banking sector continues unabated, the salaries of the top ranks are increasing by up to 59%, confirming the gap between the golden boys and the employees at the… counter.
These hours the new voluntary redundancy program of Piraeus Bank, for which there are strong reactions, is coming to an end, with the compensation for those who opt for immediate departure reaching 180,000 euros and 220,000 euros for those who choose to leave with a long-term leave of 2 years with pay.
Similar schemes had been preceded a few months ago at Alpha Bank with compensation of up to 200,000 euros, which 500 employees accepted, compared to 400, which was the bank’s initial target.
A wave of departures that does not seem to be abating immediately. The goal, according to bank executives, is to reduce operating costs through staff departures and branch closures.
Due to successive voluntary redundancy schemes, the number of bank employees has fallen dramatically. Over the last decade, 20,990 jobs have been lost and 1,416 branches have been closed, according to official figures from the Hellenic Banking Association.
Based on these figures, in the last four years alone – that is, between 2019 (2019-DiktioTrapezon.pdf) and 2022 (2022-DiktioTrapezon.pdf) – more than 8,550 jobs have been lost.
The golden contracts
But at the same time as the reduction in operating costs is being passed on by the reduction in grassroots jobs and branch closures, senior Bank executives are seeing their bank accounts increase by “locking in” increases in their base salaries of up to 59% and in some cases, retroactively from the beginning of the year.
And with annual gross salaries reaching €600,000 which is 54 times higher than the minimum wage in the private sector and more than 6 times higher than senior managers.
The data from the remuneration reports of the Banks approved during the summer by the General Assemblies of their shareholders and the decisions of their Boards of Directors to grant special permission to adjust remuneration by amending employment contracts are revealing. On 31/12/2022, the cutter on the increase in fixed salaries set by Law 4941/2022 expired.
In Eurobank
Take for example Eurobank, which in August decided to adjust the salaries and amend the employment contracts with the Bank of its CEO, Fokion Karavias, and the Deputy CEOs Stavros Ioannou, Andreas Athanasopoulos (who will leave the Bank at the end of the year) and Konstantinos Vassiliou.
The increases in gross monthly salaries approved by the bank’s board of directors are 44.4% for CEO Fokion Karavias and 31.6% for Deputy CEOs Stavros Ioannou, Andreas Athanasopoulos, and Konstantinos Vasileiou. These increases will take effect from 01.01.2024. Thus, the gross annual salary of Mr. Karavias will increase to EUR 548 thousand and that of the deputy CEOs to EUR 492 thousand per annum.
In Piraeus Bank
The Piraeus Bank has informed the Hellenic Capital Market Commission that its Board of Directors has decided to grant a 59% increase, starting from the current calendar year 2023, in the gross annual fixed remuneration of the Chief Executive Officer, Mr. Christos Megalos, who is a related party to the Bank and its parent company, “Piraeus Financial Holdings S.A.” The decision also involves the modification of his employment contract.
In accordance with the decision of the Board of Directors of the Bank, which took into account the relevant recommendation of the Remuneration Committee and the Report of “KPMG Consultants Monopersonal SA” dated 6.10.23, in the context of which it was assessed that the proposed adjustment of the gross annual fixed salary of the Bank’s CEO is fair and reasonable for the Bank and its shareholders. The proposed gross annual fixed salary of Mr. Megalos as stated in the KPMG report is EUR 580,000.
In Alpha Bank, the Gross Annual Salary of its CEO is EUR 600,000, and EUR 548,437 in Eurobank.
In Alpha Bank
Alpha Bank is also proceeding with the adjustment of fixed salaries and the regulation of the variable remuneration framework, as well as the consequent amendment of the contracts of its senior executives.
The changes concern the CEO of Vassilis Psaltis, and the General Managers, who are members of the Executive Committee, namely General Manager – Growth and Innovation, Mr. Spyridon Filaletos, General Manager – Chief Risk Officer (CRO), Mr. Spyridon Andronikakis, General Manager – Chief Financial Officer (CFO), Mr. Lazaros Papagaryfallou, General Manager – Wholesale Banking, Mr. Ioannis Emiris, General Manager – Retail Banking, Mr. Isidoros Passas, General Manager – Chief of Corporate Center (CCC), Mr. Nikolaos Chrysanthopoulos, General Manager – International Network, Mr. Sergiu Oprescu, General Director – Chief Transformation Officer (CTO), Ms. Anastasia Sakellariou, General Manager – Chief Operating Officer (COO), Mr. Stefanos Mytilinaios, General Director – Chief Human Resources Officer (CHRO), Ms. Fragkiski Melissa, and General Manager – Wealth Management and Treasury, Mr. Georgios Michalopoulos.
In particular, at its meeting on 31.8.2023, the Board of Directors of the Bank approved the setting of the annual cash salary, which constitutes a fixed salary for the CEO, at 600 thousand euros, starting from the current financial year (gross) and for the General Managers, who are members of the Executive Committee, within the range of 60%-90% of the above annual salary of the Managing Director, depending on the area of responsibility and scope of responsibilities of each General Manager, and the formulation of the Variable Remuneration Clause in the contracts of the Managing Director and the above mentioned Members of the Executive Committee, starting from the current financial year, according to which the variable remuneration payable to them shall be attributed and paid to the CEO and the aforementioned Members of the Executive Committee at the discretion of the Bank and subject to the restrictions set forth in the applicable legislation, and may not exceed 100% of the annual fixed (gross) remuneration, subject to the specific approval of a higher percentage by the General Meeting of Shareholders of the Company.
In the National Bank of Greece
In the case of the National Bank of Greece, the total gross remuneration received by its 13 board members exceeded €2.21 million last year, up from €2.24 million in 2021 and €1.814 million in 2020 when there were 15 board members.
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