The dome of Banco Sabadell will stay this year without bonuses for the chaotic technological integration of its subsidiary in the United Kingdom, TSB, which triggered the costs and damaged the accounts of the bank last year. The president of the financial group, José Oliu, and the CEO, Jaime Guardiola, have voluntarily resigned to collect the variable part of their salary, 665,974 Y 563,516 euros respectively, 1.23 million in total, according to the group's annual compensation report.
The bank's profits fell by 54% in 2018 to 328 million, after assuming extraordinary costs of 460 million for the technological migration of TSB and make additional provisions of 177 million to heal. All this caused the entity to have lost a year in the fulfillment of its strategic plan for 2018-2020.
Thus, the fulfillment of the objectives to which the percentage of variable remuneration and long-term incentives in the form of shares receivable by executives are linked decreased in 2018 to 61.83%. In view of this situation, Oliu and Guardiola informed the board of directors on December 31st that "despite the good results of the business in Spain, the impact on the bank's results of the TSB's migration and the extraordinary circumstances of the year," they considered it appropriate to propose their renunciation of the perception of variable remuneration ".
The TSB template, also without variable
The decision of the two top executives of Sabadell is also aligned with the fact that the incidents in the British subsidiary have caused theThe directors and the entire TSB workforce have also been left without variable, which has meant that they have not paid a total of 45.5 million.
The cash remuneration of Oliu in 2018 therefore fell by 49.5% to 1.701 million of its fixed salary, which did not change with respect to 2017. In addition, it received 36,071 euros in its pension plan and consolidated 1,275 million shares of the Sabadell. For its part, the remuneration of Guardiola fell by 45%, to 1.35 million fixed salary, which was raised by 2.8%; 761,761 euros were contributed to his pension plan and 1,125 million bank titles were registered.