Details added (first version posted on 18:10)
Baku, Azerbaijan, Dec. 29
By Anvar Mammadov - Trend:
The amount of annual bonus payments to employees and managers of Azerbaijani branches of foreign banks during the year mustn't exceed the total amount of their annual salary and bonuses more than twice, according to the requirements of bonus payments in the local branches of foreign banks.
These requirements have been added to "Standards of corporate governance in banks" in accordance with the decision of the Central Bank of Azerbaijan dated December 21.
Also, according to the requirements, the decision on awarding executives of branches (branch managers and their deputies, as well as employees in charge of one or more structural units) can be made no more than once in a year, and the bonus payment to each member of the supervisory board cannot be more than one percent of the bank's net income for the year.
At the same time, the bank must complete financial year with a net profit and meet the requirements of the central bank of total capital, its adequacy, as well as assets both at the end of the financial year and at the time of the decision on bonus payment.
In addition, the payment of 60 percent of bonuses, except for those cases when the bonus payment is issued in the form of shares of the bank, is postponed, and then paid during three years in equal installments.
Moreover, if the bank completes any following year with a loss, or net income will be less than 25 percent of the net profit the bank had in the year of signing the decree on the bonus payment, or violates the above mentioned requirements of the central bank, the deferred part of the bonus payment is not paid in that year.