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Bank of Ghana has directed banks to publish salaries of its top personnel; here is why

November 26, 2019 10:35 AM

The Bank of Ghana (BoG) has said that it has resolved to ensure banks in Ghana are transparent in their operations.

The Governor of the Bank of Ghana (BoG), Dr Ernest Addison

The BoG Governor Dr Ernest Addison said to do this they have decided to scrutinize compensation package policies of universal banks and ensure that the salaries and allowances of key management personnel including Chief Executive Officers are linked to the performance of the banks and quality of its assets.

Dr Ernest Addison said, “to ensure transparency, banks will be required to publish Value Added Statements disclosing details of the compensation packages of key management personnel and Boards of Directors separately from total employee compensation.”

He was addressing journalists at the 91st monetary policy press briefing in Accra.

This is coming at the time when the salaries received by executives in the banking sector has come under intense scrutiny around the world.

In Ghana, many people have argued that this was one of the many reasons which led to the meltdown in the banking sector.

The move by the BoG to get universal banks to link compensation of bank executives with the overall performance will ensure that the executives earn their salaries just as all other employees of the bank do.