02.Sep .2021 13:00

What Does It Cost Banks To Reimburse Their Board Members?

What Does It Cost Banks To Reimburse Their Board Members?
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In 2020, Georgian commercial banks spent a total of 64.4 million GEL on the remuneration of their board members, which was 32.6 million GEL, or 33.6% less compared to 2019. The main reason for the decline in salaries paid to top management was the economic crisis, which led to a significant deterioration in banks' profitability and returns.

Banks paid a total of GEL 692 million in salaries to thousands of employees in 2020, which was GEL 38 million less than in 2019. According to the information submitted to the National Bank, the top management of the banks receive 9% of the salaries issued in the sector.

The remuneration of the management of Georgian banks in 2020 was as follows:

1) Bank of Georgia - GEL 29,101,901; Including deferred payment (mainly in shares) - GEL 25,174,822; Number of members of the Board of Directors 7 members;
2) TBC Bank - GEL 10,417,009; Including deferred payment (mainly in shares) - GEL 5,035,155; Number of members of the Board of Directors 7 members;
3) VTB Bank - GEL 8,665,534; Number of members of the Board of Directors 6 members;
4) Liberty Bank - GEL 2,818,991; Including deferred payment (mainly in shares) - GEL 386,304; Number of members of the Board of Directors 7 members;
5) Credo Bank - GEL 2,390,255; Number of members of the Board of Directors 5 members;
6) Terabank - GEL 1,861,909; Number of members of the Board of Directors 4 members;
7) Pasha Bank Georgia - GEL 1,806,740; Number of members of the Board of Directors 5 members;
8) Basisbank - GEL 1,412,650; Number of members of the Board of Directors 7 members;
9) FINCA Bank Georgia - GEL 1,221,612; Number of members of the Board of Directors 3 members;
10) Cartu Bank - GEL 1,180,593; Number of members of the Board of Directors 5 members;
11) Isbank - 1,095,239 GEL; Number of members of the Board of Directors 3 members;
12) Halyk Bank - GEL 856,722; Number of members of the Board of Directors 5 members;
13) ProCredit Bank - GEL 640,174; Number of members of the Board of Directors 3 members;
14) Ziraat Bank - GEL 579,051; Number of members of the Board of Directors 3 members;
15) Silk Road Bank - GEL 396,580; Number of members of the Board of Directors 3 members.