Bancaja, one of the seven Spanish lenders that formed BFA-Bankia (BKIA), said it will revise the pension rights of Finance Director Aurelio Izquierdo after the merged lender was nationalized this month.
Bancaja, based in Valencia, didn’t give details of the pension agreement in an e-mailed statement on the board’s decision today. The annual report of the bank’s parent company published this week showed Bancaja had 13.9 million euros ($17.2 million) in commitments for the pension of a former member of senior management and an associated insurance policy to cover early retirement.
Economy Minister Luis de Guindos told reporters in Parliament today the pension was “unacceptable.” Bankia group was nationalized on May 9, and the new management of Spain’s third-largest lender has asked for 19 billion euros of public money to clean up its balance sheet.
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