June 15, 2021

BBVA gives more power to the new CEO and grants Francisco González the honorary presidency

BBVA gives more power to the new CEO and grants Francisco González the honorary presidency

BBVA has completed the transformation of its management structure for the era after its historic president Francisco González. And it does so with a new balance of powers between the president, Carlos Torres, and the CEO, Onur Genç, in line with the demands of regulators on corporate governance of banks.

In particular, Genç assumes under his command all the business areas of the group and will respond to the board of directors and not to the president. The company places Genç y Torres in the new organizational chart at the same level, against the more presidential figure González had.

For its part, the new president, who will take office in January, is in charge of supervision, institutional representation and the design of the group's strategy. In this way, a balance and division of functions is created between the two executive directors.

These delimitations intend to reinforce the separation of functions between president and CEO, eliminating the hierarchical dependence that the second one had on the former, reporting both to the board of directors, according to sources from the entity to Europa Press. From the point of view of execution, the new structure assumes that the key areas related to the transformation will depend on Carlos Torres, while the business areas will remain the exclusive competence of Onur Genç.

During the last weeks there has been speculation about the possible change in the structure of BBVA, one of the banks designated by the new requirements of corporate governance. Both the ECB and community justice have been reluctant to the fact that there is a president who accumulates executive power, as they understood that it went against good governance of financial institutions.

For his part, Francisco González will remain linked to the banking group once his term ends. González was the promoter of the merger of BBV and Argentaria and since then he has been in charge of the entity. After more than two decades, the director will take on the position of honorary president of BBVA and the BBVA foundation.


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