03/11/2015 10:41
Bank of Cyprus Directors are proposing doubling the Board’s remuneration and an incentives plan for a group of thirty managers, at the meeting of shareholders to be held on 24 November.
The invitation to the annual meeting and the resolutions included were published last night by the Bank.
The Board proposes that the president’s remuneration changes to €120 thousand annually and for vice presidents to €80 thousand, for the senior independent director to €70 thousand and for the non-executive board members to €45 thousand.
Specific fees are also proposed for presidencies and participations in the four committees of the Board.
Based on the proposed fees president Joseph Ackermann is estimated to receive €150 thousand annually against remuneration of approximately €60 thousand given in 2014 for the duties of the non-executive chairman.
The two vice presidents Wilbur Ross and Maxim Goldman will be paid €120 thousand each compared with around €50 thousand given to the vice president in 2014.
It is also suggested that the four non-executive directors are paid €90 - 115 thousand over remuneration of € 20-26 thousand received in 2014.
The Board also includes the outgoing CEO Patrick Hourican and finance director Christakis Patsalides.
With the proposed changes, total remuneration is estimated at € 810 thousand against €360 thousand in 2014.
The meeting will examine the reelection of three directors - Zografakis, Kalochoritis and Patsalides.
Besides doubling fees, the Board also proposes an incentives plan for the senior management team of the Bank.
The plan includes granting stock options corresponding to 2% of the share capital. The options will be exercisable between 2019 and 2026 at the price of € 0,25.
The price is one cent higher than the issue price of the new capital of the Bank in 2014 and approximately eight cents over yesterday's closing share price on the CSE.
The Bank says that the plan is intended for a small group of 30 directors and aims to align the objectives of employees with those of shareholders.
Recently, the Bank granted salary increases of 3% to some employees, causing the reaction of the employees union.
The increases were granted amid the freezing of wages which is in force in recent years and were not announced until leaked.
As regards the incentives plan for managers, the Bank says that stock options allow flexibility in increasing the proportion of fixed and variable remuneration up to 100%.
The objective as noted, is "to limit any disadvantages in the ability to attract and retain employees in key positions."
In addition to the increased compensation and the plan of incentives, the meeting will also be called to approve the financial statements of the Bank.
BOCY had losses of €260 mn in 2014 compared to losses of €2 bn in 2013.
The Board also proposes the reappointment of Ernst & Young auditors.
The invitation to the annual meeting and the resolutions included were published last night by the Bank.
The Board proposes that the president’s remuneration changes to €120 thousand annually and for vice presidents to €80 thousand, for the senior independent director to €70 thousand and for the non-executive board members to €45 thousand.
Specific fees are also proposed for presidencies and participations in the four committees of the Board.
Based on the proposed fees president Joseph Ackermann is estimated to receive €150 thousand annually against remuneration of approximately €60 thousand given in 2014 for the duties of the non-executive chairman.The two vice presidents Wilbur Ross and Maxim Goldman will be paid €120 thousand each compared with around €50 thousand given to the vice president in 2014.
It is also suggested that the four non-executive directors are paid €90 - 115 thousand over remuneration of € 20-26 thousand received in 2014.
The Board also includes the outgoing CEO Patrick Hourican and finance director Christakis Patsalides.
With the proposed changes, total remuneration is estimated at € 810 thousand against €360 thousand in 2014.
The meeting will examine the reelection of three directors - Zografakis, Kalochoritis and Patsalides.
Besides doubling fees, the Board also proposes an incentives plan for the senior management team of the Bank.
The plan includes granting stock options corresponding to 2% of the share capital. The options will be exercisable between 2019 and 2026 at the price of € 0,25.
The price is one cent higher than the issue price of the new capital of the Bank in 2014 and approximately eight cents over yesterday's closing share price on the CSE.
The Bank says that the plan is intended for a small group of 30 directors and aims to align the objectives of employees with those of shareholders.
Recently, the Bank granted salary increases of 3% to some employees, causing the reaction of the employees union.
The increases were granted amid the freezing of wages which is in force in recent years and were not announced until leaked.
As regards the incentives plan for managers, the Bank says that stock options allow flexibility in increasing the proportion of fixed and variable remuneration up to 100%.
The objective as noted, is "to limit any disadvantages in the ability to attract and retain employees in key positions."
In addition to the increased compensation and the plan of incentives, the meeting will also be called to approve the financial statements of the Bank.
BOCY had losses of €260 mn in 2014 compared to losses of €2 bn in 2013.
The Board also proposes the reappointment of Ernst & Young auditors.
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