Lagarde clarifies BIS role, remuneration, and disclosure
ECB President Christine Lagarde clarified her role on the Bank for International Settlements (BIS) Board of Directors, detailing remuneration and disclosure practices. The explanation was provided in a letter to MEP Fabio de Masi.
BIS Board: Demands and responsibilities
The Bank for International Settlements (BIS) Board of Directors is tasked with determining the institution's strategic and policy direction, supervising its management, and fulfilling specific statutory duties.
Membership on this Board entails participation in BIS governance decisions, which carry governance responsibilities and potential personal legal liability, for which no directors and officers insurance exists.
The BIS Board meets at least six times annually, typically in person at its Basel headquarters, often on weekends or Mondays.
Meaningful participation requires thorough preparation and, at times, follow-up between meetings.
President Lagarde's membership is considered part of her official mandate as ECB President, yet it is also an exclusive, BIS-centric ad personam assignment, distinct from the core responsibilities of the Governing Council.
This dual nature underscores the demanding commitment required for the role.
Remuneration and transparency rules
Between 2020 and 2025, President Lagarde received annual remuneration from the BIS ranging from CHF 104,001 to CHF 130,457, approved by BIS shareholders at their Annual General Meeting.
This remuneration is not paid by the ECB and therefore not included in the ECB Annual Accounts.
However, since the start of her term, Lagarde has been subject to the ECB's Code of Conduct for high-level officials, which permits official mandates in an official capacity, provided they do not hinder independence.
This principle aligns with previous Codes of Conduct for Governing Council members.
The BIS role has consistently been fully disclosed in her annual Declarations of Interests, published on the ECB website.
Clarity on external engagements
This clarification provides valuable insight into the demanding nature and governance implications of high-level external roles for central bank officials.
It reinforces the ECB's commitment to transparency regarding its President's engagements, even when remuneration originates from outside the institution.
While the details are specific to the BIS, the underlying principles of independence and disclosure are broadly relevant for public trust in central bank leadership.