Salary discrepancy has caused BB executives to leave the bank and move into the private sector
On guidance from the Union, the ordinary general meeting (AGO) of Banco do Brasil (BBAS3) granted only a partial adjustment to the members of the bank’s board of directors. The fixed remuneration of the president, Tarciana Medeiros, as well as the vice-presidents and directors for the period between April this year and March next year received an increase of 4.62%, in line with inflation.
The global amount that BB will be able to allocate to administrators’ remuneration will be R$76.2 million, more than 19% below what the bank had proposed, R$94.5 million.
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The total set followed the guidance of the controlling shareholder, the government, according to the minutes of the meeting published by the bank.
The remuneration of BB’s management is below the average practiced by private banks of similar size. Last year, the bank was authorized to disburse R$73.7 million.
While Itaú Unibanco received approval to make payments of R$495 million; Bradesco, up to R$732.3 million; and Santander Brasil, up to R$517.5 million.
Towards private initiative
In recent years, BB has requested adjustments to the salaries of board members on the grounds that the directors’ remuneration is very close to that of managers of strategic units, the highest positions among the bank’s CLT employees, despite the fact that statutory directors accumulate responsibilities larger.
The proximity is due to the fact that between 2016 and 2022, the remuneration of the bank’s management was not readjusted.
The bank’s requests have been rejected by the Union, which grants smaller adjustments than those requested throughout this period. This discrepancy has led executives to leave the bank and move into the private sector.
The amounts that banks and publicly traded companies are authorized to allocate to high-level executives are not necessarily disbursed in full. Much of the remuneration is variable, and is only paid upon achievement of performance targets.
With information from Estadão Content
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