Draghi Faces 50% Salary Cut When He Succeeds Trichet as President of ECB
Mario Draghi
Michele Tantussi/Bloomberg
Mario Draghi, governor of Italy's central bank.
Mario Draghi, governor of Italy's central bank. Photographer: Michele Tantussi/Bloomberg
May 25 (Bloomberg) -- Mark Grant, managing director at Southwest Securities Inc., and Nobel Prize-winning economist Robert Mundell of Columbia University talk about the outlook for Mario Draghi as president of the European Central Bank, the role of gold in the global monetary system and the possibility that Greece may withdraw from the euro. They talk with Pimm Fox on Bloomberg Television's "Taking Stock." (Source: Bloomberg)
May 25 (Bloomberg) -- Robert Mundell, Nobel Prize-winning economist and professor of economics at Columbia University talks about Mario Draghi's nomination as president of the European Central Bank. Mundell, speaking with Pimm Fox on Bloomberg Television's "Taking Stock," also discusses European debt and trade. (Source: Bloomberg)
European Central Bank President Jean Claude Trichet
Hannelore Foerster/Bloomberg
European Central Bank President Jean Claude Trichet.
European Central Bank President Jean Claude Trichet. Photographer: Hannelore Foerster/Bloomberg
Italian flag flies alongside the European Union
Alessandra Benedetti/Bloomberg
The Italian national flag flies alongside the European Union flag at the Banca d'Italia, the Italian central bank, in Rome.
The Italian national flag flies alongside the European Union flag at the Banca d'Italia, the Italian central bank, in Rome. Photographer: Alessandra Benedetti/Bloomberg
Italy's Central Bank Governor Mario Draghi
Michele Tantussi/Bloomberg
Bank of Italy governor Mario Draghi will face a pay cut of 50 percent when he replaces Jean-Claude Trichet as president of the European Central Bank in November.
Bank of Italy governor Mario Draghi will face a pay cut of 50 percent when he replaces Jean-Claude Trichet as president of the European Central Bank in November. Photographer: Michele Tantussi/Bloomberg
Bank of Italy governor Mario Draghi will face a pay cut of 50 percent when he replaces Jean-Claude Trichet as president of the European Central Bank in November.
Draghi’s salary in 2010 was 757,714 euros ($1,090,123), more than twice Trichet’s take, the Rome-based bank said on its website yesterday. It was the first time the governor’s salary was made public. Trichet’s basic pay was 367,863 euros, according to the ECB’s website. Federal Reserve Chairman Ben S. Bernanke pulled in $199,700 in 2010.
On May 17, euro-area finance ministers nominated Draghi to become the next head of the Frankfurt-based central bank when Trichet’s eight-year term ends on Oct. 31. Draghi, 63, who also heads the Basel-based Financial Stability Board, is currently the only candidate and European Union leaders are due to ratify him for the post at a two-day meeting in Brussels starting June 23.
In addition to their basic salaries, Trichet and ECB board members receive allowances for expenses such as accommodation. Trichet is provided with a residence owned by the Frankfurt- based ECB in lieu of a housing allowance.
Draghi’s successor at the Bank of Italy won’t fare as well as the outgoing governor. The central bank has adopted a 10 percent pay cut starting in 2011.
To contact the reporter on this story: Lorenzo Totaro in Rome at ltotaro@bloomberg.net.
To contact the editor responsible for this story: Craig Stirling at cstirling1@bloomberg.net
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