Twenty-six executives have left Spanish savings banks since financial sector restructuring began in 2010, and collectively they will receive 150 million in severance pay, pension or other forms of compensation. All these benefits for not doing a good job?
Undeserved compensation can cause a public scandal, because many of the executives performed poorly at their jobs and are directly responsible for the pains that banks are experiencing right now.
Some of the severance payments have not been made, and others are under investigation by the country?s national anti-corruption agency or have gone to the courts, which cancelled them. It is good that federal prosecutors are investigating cases of abuse or exorbitance, because generalizing is demagogical.
The debate going on right now is whether the manager compensation is connected to skilled management or contractual blindajes, which are special protective measures given to corporate executives. Blindajes typically protect their stock shares in case of termination or other unexpected events.
