What is the remuneration of Cyprus banking elite?

April 7, 2019 at 12:51pm
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Bank shareholders are generous with the remuneration of high ranking managers, a Phileleftheros analysis published on Sunday shows.

Its analysis based on the latest financial statements shows Bank of Cyprus CEO John Hourican was paid €2.25 m in 2018, compared to €2.10 m in 2017 and €1.65 m in 2016. In 2014 he received €844,000 and in 2015 €910,000.

Deputy BoC CEO Christodiulos Patsalides was paid €197,000 in 2018, the same as in 2017 and 2016. In 2015, he received €151,000.

At the Bank of Cyprus total pay for the other 13 senior managers in 2018 was €3.3 8m, up from €3.54 m in 2017. Remuneration for members of the board of directors and the main managers was €7.12 m in 2018, up from €7.01 m in 2017.

BoC members of the board of directors receive the following: Josef Ackermann €150,000, Arne Berggren €115,000, Maksim Goldman €120,000, Michalis Spanos €100,000, Ioannis Zografakis €135,000, Michael Heger €110,000, Lyn Grobler €90.000, Anat Bar-Gera €85,000, Pola Hadjisoteriou €36,000, Marisa Philippou €29,000.

In 2018 Bank of Cyprus had 4,146 employees (2017, 4.355) and personnel costs totalled €217 m up 6% over the €205m in 2017), mainly as a result of the renewal of the collective agreement in 2017.

At Hellenic Bank, based on the nine month 2018 results, remuneration of members of the board of directors with executive duties stood at €721,000 from €439,000 at the end of September 2017. This covers CEO Ioannis Matsis and CFO Lars Kramer. Senior managers not members of the board received €1.52 m, down from €1.73 m at the end of September 2017.

Hellenic had 14 senior managers.

As regards remuneration of the board of directors based on the 2017 annual report these were: president: €140,000, vice president: €50,000, senior independent member: €50,000, member: €45,000.

Moreover, remuneration of members of the following committees in 2017 were: chairman of the watchdog committee: €45.000, chairman of the risk management committee €45,000, chairman of the remuneration committee: €15,000, chairman of the appointments/ corporate governance committee: €15,000, member of the watchdog committee: €20,000, member of the risk management committee: €20,000, member of the remunerations committee: €10,000, member of the appointments/corporate governance committee:€10,000.

On January 28, 2019 Hellenic had  2,506 employees. Personnel costs for the nine months ending September 2018 were  €59.4 m. Personnel costs were up 21.1% to €21.8m from €18m in the second quarter mainly as a result of the transfer of employees.

A recent European Bank Authority report on bankers remuneration EU-wide showed that in 2017 eight bankers in Cyprus received more than €1 m. It said that between them the eight bankers received a total of  €16.6 m of which €11.6 m was fixed. Three bankers received between €2 m and €3 m, Phileleftheros quoted the EBA report as saying.