Raiffeisen top executives' bonuses delayed for three years

22 aug 2010 Autor: Razvan Voican

The six members of Raiffeisen Bank's executive management team will not take home annual bonuses for three years starting 2010, with payments being postponed according to a decision by the Remuneration Committee run by Herbert Stepic, CEO of Raiffeisen International, the bank's main shareholder.
The executive management is made up of Steven van Groningen, president, Marinel Burduja, prime vice-president and James Stewart, Răzvan Munteanu, Carl Rossey and Vladimir Kalinov, vice-presidents, each of them with separate compensation contracts, which include a monthly salary and a yearend bonus that cannot exceed one third of total annual payments.
At the same time, they are included in Raiffeisen International's motivation plan, getting free stock in the Austrian group.
At Raiffeisen, payments to employees last year accounted for 27% in the bank's revenues. The target for 2010 is to cut this weight to 25%, not through salary cuts, but by boosting revenues through an expansion strategy.