Earlier today we reported of [8]an instance of fiduciary impropriety so gross and abhorrent - namely the director of insolvent and nationalized Bankia preparing to receive €14 million in severance - that the public outcry was furious and instantaneous. The result: less than 12 hours later Expansion reports [9]that according to Bankia president Jose Ignacio Goirigolzarri, the management of the the firm will waive their pension rights, and the infamous Aurelio Izaquierdo will not get his accrued pension when leaving the firm.
From Deltaworld [10]:
BFA-Bankia President, Jose Ignacio Goirigolzarri, has transmitted to the Government that the CFO of Bancaja, Aurelio Izquierdo, may not exercise their accrued pension rights when I leave the entity, and amounting to EUR 13.9 million, Government sources.
Left, that he was the right hand of the President of Bancaja, José Luis Olivas, who promoted him as commercial director of Bankia, he has right to a pension of nearly 14 million euros, according to the memory of accounts consolidated 2011 of bank financial and savings (BFA), Bankia matrix.
In particular, Bancaja has commitments with this steering, on October 13, 2011 decommissioned as commercial director of Bankia, 7,633 billion euros in concept of policy of defined contribution covering the contingency of retirement, death and disability. In addition, Bancaja has committed to Izquierdo 6,285 million in individual savings insurance to cover the option that “under certain circumstances”, opt for early retirement.
Bankia sources explain that neither bank financial and savings (BFA) nor Bankia are pending for any payment to left for his membership in the senior management of the entity. “Commitments are Bancaja,” the same sources stressed. The Levantine entity, like the other six boxes that are members of the group, will see their participation in the capital of BFA diluted when the Government becomes the preferred capital and sit the precise contributions to strengthen its solvency, which will mean a more than 23,000 million infusion of resources.
All we can say is congratulations Spain for not setting the wrong example. Which is much more than we can say about the below instances of sheer idiocy:
- Stan O'Neill - 2007 severance, just before it all blew up: $161.5 million [11]
- Chuck Prince - 2007 severance, just before it all blew up: $99 million [12]
- Angelo Mozilo - profit from selling insolvent Countrywide to BAC, just before it all blew up, in what is now the worst M&A transaction of all time: $184 million (including stock 2005-2007 sales) [13]... but at least he voluntarily gave up $37.5 million in severance
- Sallie Krawcheck - 2011 severance as part of 30,000 termination effort at the above-mentioned BofA: $6 million [14]
- And of course, Merrill Lynch - $3.6 billion in secret bonuses, [15] as it was all blowing up and being indirectly bailed out by another soon to be bailed out firm, Bank of America
And so many more.
Spain may be broke, but at least it is not the biggest banana republic in the world: its citizens saw an epic instance of injustice and within hours put a stop to it.
Meanwhile in America... nobody cares.