Bankitalia has defined the parameters within which Italian banks must move to provide useful data for monitoring the salaries of the highest paid managers. Italian credit institutions have until the end of the month to send all the material required by the Bank of Italy to comply with the new directives of the European banking authority (EBA). The squeeze requires that top executives' salary count includes all possible income, from fixed salary, to private agreements and other types of deferred pay. All this, specifying the method of payment, whether in cash, shares, instruments linked to shares or even other instruments - such as insurance policies.
By 31 October, therefore, Bankitalia will be able to prepare a database containing all the information about the remuneration of all Italian bankers. There are many cases in which the salary exceeds the limits established by the new tables in via Nazionale, just think that there are 109 bankers who earn more than one million euros. Specifically, the new European rules establish that the variable portion of the banker's salary cannot exceed the fixed salary, that at least 50% of the variable portion must be in shares, while 40% will be deferred over a period of no less than 3 -5 years.
The new constraints established by the European Union will be activated if the total salary exceeds 500 thousand euros, or when the manager in question is part of the 0,3% of the highest paid by the bank or, lastly, if the salary is equal to or higher than that of another risk taker. Bankitalia will become aware of these situations thanks to the communications of the banks themselves which will have to report any exceptions, i.e. when a manager earns more than 750 thousand euros. If the manager is among the 0,3% of the highest paid staff, prior authorization will need to be sought. Finally, in those 109 cases in which the banker receives more than one million a year, Bank of Italy will be required to inform the EBA before making decisions.
