The European Banking Authority (EBA) has tightened its vigilance of European entities due to the coronavirus crisis and calls for them to be "conservative" in the bonuses they pay their managers.
The request is in addition to the one made last Friday, when the same supervisory entity asked the banks to suppress or postpone the payment of dividends to their shareholders until next October.
"Competent authorities should ask banks to review their compensation and compensation policies to ensure they are consistent with the current risk management scenario that reflects the current situation," he explained in a statement released late in the afternoon.
In this sense, the EBA proposes measures such as deferring the collection of the bonus for a longer period or introducing more remuneration in shares compared to the traditional cash payment.
Several Spanish entities such as Santander, CaixaBank or BBVA have anticipated the regulator's request announcing the partial or total suppression of the variable remuneration of their management leadership during this year.
This is a preventive measure, since the impact that the stoppage of economic activity will have on its profit and loss accounts and the stock market performance of the rest of the year is still uncertain.
The EBA, chaired by the Spanish José Manuel Campa, is an independent EU authority that works to ensure an effective and consistent level of prudential regulation and supervision throughout the European banking sector.
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