Savings banks continue to keep Management Board salaries under wraps

Governments and Financial Transparency: Saving Banks Under Scrutiny in Mecklenburg-Western Pomerania

The Finance Minister of Mecklenburg-Western Pomerania, Heiko Geue, is taking action against the stubbornness of certain savings banks in the region with regards to the disclosure of their Management Board salaries. This issue of transparency has been a long-standing concern, with the minister aiming to propose an amendment to the Savings Banks Act, mandating group-wide disclosure of Management Board remuneration.

Although the majority of public companies in Mecklenburg-Western Pomerania comply with the legal requirement to disclose their remuneration, specific savings banks, particularly in Rostock, have been resistant, releasing no such information. This reluctance stands in stark contrast to transparency standards set by the regional government and is a matter of concern for the German Federal Financial Supervisory Authority (BMF).

Geue's proposed amendment to the Savings Banks Act is expected to tackle this issue, requiring even larger savings banks like Sparkasse Rostock and Vereinsbank Mecklenburg-Vorpommern to comply with new disclosure standards.

So why, despite a legal obligation, do some savings banks continually refuse to disclose their Management Board salaries? The sources do not provide explicit answers, but potential explanations include:

1. Non-compliance with regulations
2. Internal policies that contradict legal requirements
3. Organizational cultures prioritizing secrecy over transparency
4. Administrative hurdles or insufficient reporting mechanisms
5. Legal loopholes exploited by savings banks
6. Enforcement gaps by regulatory bodies
7. Financial constraints that make compliance difficult

Whether it's to maintain support from stakeholders or simply avoid accountability, the refusal to disclose Management Board remuneration is a significant issue in governance. Transparent compensation packages are essential for maintaining trust in companies and ensuring that the rewards match the performance of their leaders.