The global management team of Banco Bilbao Vizcaya Argentaria SA will forgo their entire variable compensation for 2020 in solidarity with those affected by the coronavirus pandemic, according to CEO Carlos Torres Vila.
The Spanish lender joins some of its European peers, whose top brass decided to cut or forgo bonuses amid the pandemic. Local peer Banco Santander SA earlier announced that Executive Chairman Ana Botín and CEO José Antonio Álvarez would take a 50% cut to their total 2020 compensation, while nonexecutive directors would take a 20% cut.
Andrea Enria, chair of the European Central Bank's supervisory board, recently urged lenders to exercise "extreme moderation" and limit their bonus payouts in 2020. He told the Financial Times that the regulator could take action against banks that do not show restraint on their payouts.
Meanwhile, BBVA expects the market disruption triggered by the virus to negatively impact its income statement but Vila did not specify how much or how big the impact would be. He, however, stressed that BBVA is a solid bank with a comfortable capital and liquidity position.