The Court of Cassation has ruled in favour of BoI’s sanctions imposed on a bank’s directors for violating regulations on compensation and incentive policies and practices.
In particular, in the crosshairs of the supervisory authority was the very high compensation of the general manager, paid at the end of his term of office due to consensual resolution, despite the negative results of his management. This compensation, moreover, had not been parameterized to performance and risks taken, as required by industry regulations.
According to the Supreme Court, the detailed rules issued by the BoI pursuant to Article 53 of CBA are supplementary to national collective agreements. However, in the termination agreement in question, remuneration had been provided for in addition to that covered by the contract, thereby resulting in a violation of the second-level regulations issued by the BoI and thus making the sanctions imposed legitimate.
Court of Cassation, Sec. II, order of 31 May 2022 no. 17567