MANAMA: Reacting to the new remuneration rules implemented by the Central Bank of Bahrain (CBB), senior executives say the move doesn’t go well with Bahrain’s stature as a banking hub.
“The slab of BD100,000 yearly is not sky-high simply if you put bonus, perks and privileges together, eve y second senior executive will be in this category,” a senior executive seeking anonymity told The24X7News Bahrain (www.twentyfoursevennews.com).
Other executives see this move as part of the global move of over-regulation and disagreed with the outcome of such regulations.
“I must say that in line with the new regulation if someone surpasses the limit he/she has to defer 50% of the payment for three years,” he said, adding that for the global groups senior executives might think twice before taking up jobs in Bahrain.
New rules that restrict bankers’ bonuses in Bahrain have been implemented since July last year.
Central Bank of Bahrain Governor Rasheed Al Maraj said the amendments to the CBB Rulebook on remuneration rules for licensed banks were brought in to better protect shareholders and other stakeholders.
Responding to questions from bankers, Al Maraj said the new rules are fair and in line with international best practices, including those recommended by the Basel Committee.
Among other things, he said, the rules specify fixed and variable components of remuneration.
According to the CBB rulebook, the rules apply only to approved persons and material risk takers with a combined annual salary of BD100000 or more including all perks and benefits.
The rulebook says accrual and deferral of variable remuneration would not oblige the bank to pay the variable remuneration, particularly when the anticipated outcome has not materialised or the bank’s financial position did not support such payments.