The Bank of Israel is tightening its transparency requirements from the banks on employee salaries. Supervisor of Banks David Zaken has published a draft circular requiring each bank to publish on its website the distribution of employees' salaries.
"Current disclosure provides information about total salary costs of a bank's employees, but does not show how the salary cost is distributed between employees. In view of the wish to improve transparency on the salary cost distribution in the banking system, I have decided to require separate disclosure about salaries according to salary levels," said Zaken.
The Bank of Israel set four salary brackets for this disclosure: up to NIS 10,000 a month; NIS 10,000-30,000; NIS 30,000-50,000; and over NIS 50,000. The bank will have to state how many employees are in each bracket, and the total salary cost of the bracket. The bank will also have to disclose the total salary cost at its foreign branches.
The banks have 38,000 employees altogether, and their salaries are a major expense, amounting to NIS 17 billion a year. The average salary cost was NIS 28,100 a month. However, the median salary cost is NIS 17,500.
Published by Globes [online], Israel business news - www.globes-online.com - on March 27, 2014
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