Italy's central bank governor attacks executive pay

The governor of Italy's central bank called on banking leaders for reforms in the governance of their sector at a conference in Rome on Tuesday, citing executive pay as an issue that needs tackling. "The Italian banking system has undoubtedly made progress in governance," Bank of Italy Governor Ignazio Visco said, Bu he added that: "we expect additional steps forward to be made; there are still plenty of areas where more efforts are necessary". Visco seems to be keen to see Italy's banks break up 'old boys' clubs' in board rooms. Visco said banking boards must increase the number of women board members, and seek to diversify the experience and backgrounds of their members in general. The governor commented that the "capacity to prevent or at least cushion the blow" of the credit crisis "has been greater where the board knew how to keep control of risks, demonstrated skill and transparency." Visco also bit into banks for their "criticism and resistance to the Bank of Italy's corrective actions" to nip executive salaries and bonuses that are "not coherent" with the current economic crisis. He scolded banks for not heeding pressure reduce the amount of assets connected to public debt too, saying they ignored "costs connected with profligate and excessively structured government assets".