Limiting top managers’ pay would “shield banks from unfair competition on compensation escalation” and would add “equity and social justice” to the actions taken by the government, the Bank of Italy and the Abi, to get out of the crisis. This is the line of argument presented by the seven unions in the banking industry – Dircredito, Fabi, Fiba-Cisl, Fisac-CGIL, Sinfub, UGL Credito and Uilca-UIl – which, on March 15, sent an open letter to Mario Monti, President of the Council, Ignazio Visco, Governor of the Bank of Italy, and Giuseppe Mussari, chairman of the Abi employers’ organization, asking that the maximum ratio between staff and top management’s pay be proportioned to 1 to 20. They point out that the current average ration is 1 to 50.
Last week, the seven key union organizations in the banking industry wrote an open letter to the President of the Italian Council, to the governor of the Bank of Italy and to the Chairman of the Abi employers’ organization, calling for measures to limit top management pay so that it doesn’t exceed 20 times the salary of employees. They say this limit is even more legitimate since they negotiated a sectoral collective agreement focusing on workers’ solidarity in the name of employment. (Ref.
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