A bank in Bangladesh is expected to stop issuing bonuses to its top executives in response to a new anti-corruption law.
The Commercial Bank of Bangladesh, which operates in about a dozen cities in central Bangladesh, announced on Wednesday that it will start paying bonuses to employees, as well as to some of its top management, but only after an overhaul of its existing incentive programs.
In a statement, the bank said that it would stop paying bonus bonuses to the top management of its three largest commercial banks, which operate in the cities of Pune, Bengaluru, and Panchkula.
The move comes as the government is facing criticism over its lack of transparency and oversight of the economy, with some lawmakers calling for a crackdown on corruption.
The bank said it will also stop paying salaries to its senior management for the current fiscal year, and for the next two years.
The changes will take effect from January 1, 2019.
“Our aim is to make our business as transparent as possible, and we want to show that our efforts to reform the economy are working,” Commercial Bank Chairman Hamadur Rahman said in a statement.
“We are also taking steps to make the incentives programs as effective as possible.”
In January, the government approved a $3 billion bank recapitalization plan, but has yet to finalize a second plan to pay bonuses.