Spain's BBVA bank freezes senior executives’ pay
About 300 top executives around the world will be affected by the bank’s latest measure.
MADRID – Spain's second largest bank BBVA said Thursday that it was freezing the salaries of its senior management in 2009 as part of measures aimed at weathering the global financial crisis.
"The board of directors of BBVA analysed today the group's salary policy and took the decision to freeze the salaries of BBVA's top management in 2009," it said in a statement.
"The decision to freeze salaries is in line with the measures of prudence and austerity that have been put in place at all levels by the group within the new economic and financial environment," it added.
The measure affects 300 executives of the bank around the world, including BBVA chief executive officer Jose Ignacio Goirigolzarri, BBVA said.
During an appearance last week on a television interview show, Prime Minister Jose Luis Rodriguez Zapatero warned "big businessmen and shareholders" that "now is not the time for big profits, excessive salaries and short-term return on investments".
BBVA posted a 2008 net profit of EUR 5.02 billion, an 18.1 percent drop over the previous year as the global financial crisis hit its bottom line.
Its 2008 results included a provision of EUR 302 million to cover its exposure to the alleged fraud by US investment broker Bernard Madoff.
[AFP / Expatica]