Government acts against bank bonuses

The government announced a directive Tuesday that almost certainly will results in legal action.

The thrust of the directive was to reduce the incentives earned by employees at public banks.

The directive separates the schedule of incentives from employment contracts and reduced the special bonuses paid to bank executives.

The directive also is supposed to exclude what it called individuals and groups with conflicts of interest in designing and supervising the bonus schemes.

The directive said that the banks should institute the new rules within two months.

The minister of the Presidencia,  Sergio Alfaro, said that the administration was once again showing its commitment to austerity.

News stories in the Spanish press have outlined some of the lucrative bonuses received by state bank employees. However, employees in Costa Rica generally are protected from losing any benefits arbitrarily.

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