Sabadell has decided to protect his entire board of directors now that the possibility of mergers is in sight. Such protection means that any change to their contracts or a layoff would allow them to leave the firm with their backs covered.
Although Sabadell is a private bank and has navigated the financial crisis fairly well, it absorbed the CAM with help from a Share Protection Plan (EPA following the Spanish abbreviation).
This protection plan is valued at 5.249 billion euros, consists of public funds and was quite generous considering that Sabadell?s stock price rose after the aid was granted and it fueled the banks own efforts to clean up its balance sheets.
It looks like Sabadell is going to go ahead with compensation measures that the banking regulators could take.
