European Central Bank President Christine Lagarde has disclosed receiving over 130,000 Swiss francs (€142,700) last year from the Bank for International Settlements (BIS). This disclosure has sparked internal dissent among ECB staff, who are reportedly prohibited from accepting outside payments for work-related duties.
ECB employees expressed frustration, with one noting, "We mortals can't take the BIS allowance." Internal rules state that regular employees must surrender any outside compensation to the ECB.
The central bank defended Lagarde's additional income, differentiating her role as an executive leader from general staff. They argued her BIS position involves significant governance decisions with personal legal risks, justifying the separate salary. Staff assisting her, they claim, do not face similar liabilities.
The ECB also pointed to precedent, noting that former presidents Mario Draghi and Jean-Claude Trichet also received BIS allowances.
Lagarde is one of 18 central bankers on the BIS board. However, practices vary: the Federal Reserve Chairman and the Governor of the Bank of England do not claim their BIS salary. US law prohibits federal officials from accepting funds from foreign institutions. The Bank of France allows its governor to keep the allowance but reclaims 50% for the institution.
With her combined earnings, Lagarde is reportedly the highest-paid official in the European Union, with an estimated annual income of €743,000.