The BBVA divides the power between the president and the new CEO | Economy

The BBVA divides the power between the president and the new CEO | Economy

Changes to "promote the transformation and business of the group," says the entity. In the new BBVA, the key areas related to digital transformation will depend on Carlos Torres Vila, while business divisions will remain the exclusive competence of Onur Genç, that takes a great power inside the BBVA and will control the divisions that generate income. Until now, all that power was concentrated in Gonzalez.

The board will control Genç by reporting through the different commissions, among which are the "permanent delegated commission", the most powerful, the risk, the audit, the technology, the compensation and the appointments. After dealing with the issues in these commissions, he will take them to the council, the bank sources point out.

"In recognition of his legacy, Francisco González has been appointed honorary president of BBVA, as well as of the BBVA Foundation," says the bank's official note. Predictably González will have an office in the Paseo de Recoletos building in Madrid, current headquarters of the Foundation. González knows well the historical Palace of the Marquis of Salamanca because it is where the headquarters of Argentaria was, bank that he presided from 1996 to 1999.

These changes will be effective when the corresponding authorizations have been obtained, "foreseeably before December 31, 2018", but could be some days before if the official permits arrived. Genç has put himself as an urgent task to speak Spanish since he does not speak the language.

Despite this announced distribution of power, the note says that Torres will be responsible "for the direction and proper functioning of the council, the supervision of management, the institutional representation of the entity and the leadership and momentum of the group's strategy and its Transformation proccess".

The new organizational structure is composed of 22 people, including the dome. The two most important areas with relief have been investment banking, once Juan Asúa has left it to be the president's senior adviser, and the United States address, where Genç was. The first has been in the hands of Luisa Gómez Bravo and the bank in North America will be led by Javier Rodríguez Soler.

Three executives come from the management structure, five new ones and six change their function. In the new management scheme women take more weight and go from being one to four. It is still a small percentage, less than 20%. The main divisions will be led by Eduardo Osuna (Mexico), Cristina de Parias (Spain), Fuat Erbil (Turkey), Jorge Sénz-Azcúnaga (responsible for South America and small countries), Luisa Gómez Bravo, (Investment Banking) and Javier Rodríguez Soler (United States).

Departure from the historic Asúa

In addition to Asúa, a historical banker of the BBV, Ricardo Gómez Barredo, who was responsible for accounting and supervision, loses weight in the bridge, and will become a director of the Garanti, the Turkish subsidiary; Ricardo Moreno, who left Ingeniería, key position in the digital transformation since he managed the platforms, which returns to the Argentine subsidiary as president of BBVA Francés; and José Luis de los Santos, who leaves Internal Audit and the bank "after a successful career of more than three decades in the entity."

Another innovation in the power structure has been the creation of a new area: Supervisors, Regulation and Compliance, led by Eduardo Arbizu, which will also depend on the council and not on the president. The internal audit, led by Joaquín Gortari, will also be under the control of the council.

There are many eyes on this new stage of the bank, especially those of the punished shareholders, who will be aware of how the new management scheme of BBVA works.

Two heads with one goal: to raise the value

"The new organizational structure of BBVA seeks to transmit to the market a renewed air and a more attractive and credible digital transformation structure", according to market sources. It is not an easy task due to the inertia of the value, which involves more than a 31% drop in the year, and that of the financial sector, but there is expectation among analysts to check how the new power scheme works.

President Carlos Torres has stayed with the area of ​​technological engineering, which will lead Ricardo Forcano, Talent and Culture, (Carlos Casas), Data, (David Puente), Global Economy and Public Affairs (José Manuel González-Páramo), Strategy Victoria del Castillo, and Communication (Paul Tobin).


Source link