Salaries Of Bank Executives In A Dwindling Economy

When the Central Bank of Nigeria, (CBN), not too long ago sacked chief executives of some troubled banks in Nigeria and traced their investments to 60 multi-million naira shops in Dubai, many Nigerians expected a comprehensive sanitization of the financial sector.

For instance, apart from their removal and subsequent trial for alleged corrupt enrichment, many had thought that their fabulous pay packages which normally formed an additional driving force for their flamboyance would be addressed.

Instead, the apex bank re-appointed substantive managing directors in replacement who are now known to earn the same fabulous salaries considered very outrageous, even unthinkable by the banking public whose funds form part of the package.

For instance, a new CBN appointee in one of the troubled banks, whose predecessor was removed in August, this year, is said to have earned a whooping N5.8 million as October salary, exactly the same amount the deposed managing director often received.

That figure, The Tide learnt does not include questionable quarterly payments and other sundry allowances usually not contained on the monthly payroll.

Just like the managing directors, the executive directors of the affected banks, it is now known, received take-home pay of N3.8 million each during the same period, a figure which is exactly the same paid to their sacked predecessors. Like their superiors that amount excludes the now known quarterly payments and sundry allowances not usually contained in the payroll.

The Tide is concerned because; in order to save the ailing banks from total collapse public funds were injected into the financial sector which naturally should bring about attitudinal change in the spending pattern of banks.

Furthermore, the new bank executives should have seen public involvement in their private malaise as a pointer to the fact that their flamboyance and lavish personal investment, outside the shores of the country, like the 60 mega shops in Dubai will no longer be acceptable and that such a life style should be done away with.

But it seems that such a tall expectation will remain a pipe dream because even the CBN, The Tide understands, has said it is not part of its own duties to recommend the emoluments of bank staff so long as such remuneration do not affect the finances of such banks.

We disagree with the CBN to the extent that public funds were injected into the banks and for that singular reason should not be allowed to exclusively decide how much to pay to themselves in view of the dwindling resources which prompted government intervention in the first place.

Another, is the state of the economy which is made even worse by the prevailing global economic meltdown both of which should require some form of fiscal responsibility of whoever is charged with the responsibility of managing either public or depositors funds.

We say so because, even in the USA, in appreciation of the hard times President Barrack Obama imposed $500,000.00 pay cap on some senior executives whose firms benefited from government financial rescue funds.

This is why The Tide thinks that it would not be entirely proper for the CBN to look the other way and fail to wade into the pay disparity, if for nothing else, the crippling economic times Nigerians and others alike today face.

It is our view that N69.6 million annual pay packages to a bank chief executive whose institution was bailed from collapse with public funds is outrageous and unacceptable and so should be reviewed.