Some banks could apply this measure already at the end of this year, but the phenomenon will become very commonplace in 2009, added Furnica.
“It is expected that the salary packages of bank managers will be slashed by half. The salary market cannot easily rebound, this is a process that necessitates time. However, bonuses are always ‘performance related’ and it is likely that by the end of the year, due to the reaction at headquarter levels, many banks will decide not to offer these any longer,” according to LDS’s President. Furnica added that the banking system attracted many employees in the past few years, who were paid more than was justified, which led to the inflation of manager title holders. The fixed salary of Vice Presidents reached €15,000-20,000 in most banks around the country, to which bonuses added 75-100 percent, explained Furnica. Directors who report directly to Vice Presidents can earn over €10,000 a month in fixed salary.
“At present, middle and top level recruiting has been frozen, with organizations confused because of what is happening, and not knowing what will happen in six months,” said Furnica. The President of LDS believes that the financial crisis can be opportune for the banking system to resettle, both in terms of productivity and professionalism.
