Lagarde Under Pressure Over BIS Salary Amid ECB Ethics Debate

Christine Lagarde is facing mounting scrutiny after disclosing she received 130,457 Swiss francs (approximately €142,700) in 2025 from the Bank for International Settlements (BIS). The revelation, reported by the Financial Times, has ignited debate within the European Central Bank (ECB) over leadership compensation and internal ethics rules.

According to reports, ECB employees are prohibited from accepting third-party compensation for work-related duties. Internal staff reactions, including critical comments shared on internal forums, suggest frustration over what some perceive as unequal standards between senior leadership and ordinary employees.

Under ECB rules, staff members offered outside compensation are required to hand it over to the institution. Even ECB officials accompanying Christine Lagarde to BIS meetings are reportedly barred from receiving allowances.

ECB Defends Its President

The ECB has defended Christine Lagarde’s BIS pay, drawing a distinction between the general staff and executive leadership. The central bank argues that the European Central Bank president operates under a separate code of conduct tailored to high-level responsibilities.

Officials also note that Lagarde’s role on the Bank for International Settlements board involves governance decisions that carry personal legal liabilities, which they say justifies the additional remuneration. The ECB further pointed out that her predecessors — Mario Draghi and Jean-Claude Trichet — also received BIS allowances during their terms.

Christine Lagarde is one of 18 central bankers serving on the Bank for International Settlements board. However, practices vary internationally. For example, the Chair of the U.S. Federal Reserve does not accept BIS compensation, as U.S. law prohibits officials from receiving payments from foreign institutions. Similarly, the Governor of the Bank of England reportedly declines the stipend.

Governance and Market Implications

The controversy over Christine Lagarde BIS Pay comes at a sensitive moment for eurozone monetary policy. As the ECB navigates inflation trends and signals potential interest rate adjustments, institutional credibility plays a key role in shaping market expectations.

With a combined annual income estimated at €743,000, Christine Lagarde is currently the highest-paid official in the European Union. While the BIS payment itself is relatively modest compared to the ECB president’s base salary, critics argue the issue centers less on the amount and more on transparency, optics, and consistency in governance.

Market analysts note that credibility concerns at major central banks can influence currency markets, sovereign bond yields, and banking sector stocks. Any perception of governance inconsistency could weigh on the euro and increase volatility in eurozone financial assets.

Ethics Policy in the Spotlight

At the heart of the debate is the scope of the European Central Bank’s ethics framework. If leadership operates under different standards, observers say clearer communication and transparent disclosure processes are essential to maintain trust.

Central banks rely heavily on institutional integrity to anchor inflation expectations and guide financial markets. Clear rules, consistent application, and proactive communication can help limit reputational risks.

As Lagarde continues her term, attention will likely focus on whether the ECB clarifies its policies on third-party compensation and leadership remuneration. In a period of heightened economic uncertainty, even governance questions can carry outsized influence.

For now, the BIS salary disclosure has placed the ECB’s ethics policy firmly under the microscope — and markets will be watching closely.