The directors of Spanish savings banks that were bailed out by state-funded aid have padded their employment contracts and, in addition, have started to restructure their future pension plans.
The bosses in charge of the seven lenders that were bailed out with public funds (BFA, Bankia, Catalunya Banc, NGC Banco, BMN, Duero-España, Banca Cívíca and Unnim) have just set up provisions worth 64.52 in compensation should they retire early.
Despite the ongoing financial crisis and the fact that these lenders were created very recently (the oldest of the group is one and a half years old), the directors' protection totals to 35.57 million euros, and their retirement funds have risen to 28.95 million euros. In total, the seven lenders collected more than 15 billion euros from the public coffers in order to clean up their balances, and three of them were nationalized as summer ended.
In some cases the gross amount of each manager's pension has grown over several years, after having transferred their compensation policies from the old lenders to the newly-created ones. This is what is happening with BMN president Carlos Egea, who after thirty five years with Caja Murcia has a retirement fund worth 2.15 million euros. His protection that was set up through the merger between BMN and Penedés, Granada and Baleares is for a maximum payment of 426,000 euros every year and a half in the case of a layoff.