BOARD COMPENSATION OF PORTUGUESE BANKS IN PSI20

The board compensation is one of the most sensitive themes to be treated. The remuneration as a whole must be perceived as fair and not be directly related to the short-term results, thereby avoiding embarrassing situations. The financial crisis started in 2007 promoted tighter legal standards for the financial sector in general and in particular for the policies of compensation and disclosure of the board compensation of companies in the financial sector. Adopting a case study methodology as a complement of the theoretical dimension which constitutes the first part of this paper, the compensation of Portuguese banks directors listed on NYSE Euronext Lisbon (PSI 20 Index) was studied. The results reveal that there isn't a coherent set of best practices regarding board compensation of financial institutions located in Portugal. It is expected, considering the legislative changes produced, that in the near future new practices will be defined for the financial sector, converging among them. [PUBLICATION ABSTRACT]