CaixaBank pide a la UE destopar los bonus de los directivos

CaixaBank has urged the EU to overhaul executive bonuses ahead of the major banking reform in 2027. The Spanish bank seeks more competitive bonuses to attract top talent from Europe. In its information sent to Brussels as part of its sector competitiveness report, CaixaBank calls for a review of the remuneration framework to reduce unnecessary complexity.

CaixaBank's CEO Gonzalo Gortzar believes Europe needs banks that can compete internationally in attracting and retaining skilled professionals. Currently, European laws limit variable remuneration that banks can offer, aiming to prevent executives from taking excessive risks for the sake of higher bonuses. The Capital Requirements Directive caps variable remuneration at 100% of the fixed salary, with the possibility of increasing it to 200% in certain cases, provided the bank meets its capital requirements and obtains prior approval from the European Central Bank (ECB).

This situation is particularly critical for divisions like investment banking or risk capital, where variable remuneration traditionally far exceeds the fixed salary. European regulations also include a deferral of 40% to 60% of the bonus over four to five years and the possibility of reclaiming it if irregularities are detected, paid through capital instruments such as shares, with at least 50% of the total amount.

Different entities have pointed out that other regions have moved away from this European stance, leaving European banks in an even more precarious position regarding competitiveness in salaries. The UK abolished these limits after Brexit, creating gaps in the remuneration schemes even within the same multinational banks. The European Commission has shown openness to reviewing the banking compensation framework that supports CaixaBank and other community entities.

The executive will consider potential changes to improve the sector's competitiveness. Although the European Commission has not explicitly stated whether it will eliminate or flexibilize the limits on variable remuneration for banking executives, it has publicly recognized the problem and promised to reflect on it. The competitiveness of the EU banking sector is not just about prudential considerations, technology, and innovation; it also depends on banks' ability to attract, retain, and reward highly skilled professionals in a global talent market, according to the Commission in one of the report's sections on sector competitiveness published in mid-July.

Any changes to compensation regulations in banking entities will be launched within the framework of the major sector reform that the Commission headed by Ursula von der Leyen aims to have in place during the first quarter of 2027. The reform package is also expected to include changes in capital requirements, bureaucratic simplification, and measures to integrate the market.

However, the executive has not yet provided enough detail to determine if the proposed changes will align with what the sector expects to recover its lost international competitiveness.