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Annual Incomes of Two Georgian Bankers Exceed 9 million USD

The incomes of BGEO Group and TBC Bank top managers grow on annual basis. The Commersant has obtained previously unknown information about the wages of BGEO General Director Irakli Gilauri and TBC Bank General Director Vakhtang Butskhrikizde. This information is based on annual reports from 2017 by BGEO Group and TBC Bank.

Both commercial banks have shares sold on the London Stock Exchange (LSE). Consequently, the companies are obliged to submit annual reports with detailed descriptions of top managers’ evaluations and wage policy, salary structures and salary amounts.

Total incomes of top managers in 2016 and 2017

In 2017, the total income of BGEO Group (Bank of Georgia) General Director Irakli Gilauri, including taxes, was 5,097,000 USD, up 18% from 2016.

The total income of TBC Bank General Director Vakhtang Butskhrikidze was 4,084,000 USD, a 35% increase from 2016.

Structure of total wages due to cash and company shares
According to the Commersant, in 2017 the cash income of the BGEO Group General Director was 763,000 USD, which is 15% of his total income. 85% of his income (4,333,000 USD) came from BGEO Group shares.

Meanwhile, the cash income of the TBC Bank General Director was 473,000 USD in 2017, which is 12% of his total income. 88% of his income came from the transmission of TBC Bank shares (3,611,000 USD).

Structure of total income due to wages and bonuses
The Commersant has clarified that the total incomes of BGEO Group and TBC Bank top managers consists of fixed wages and bonuses.

The amount of bonuses is changeable and depends on the evaluation of the top managers’ performance by the company board. This evaluation is based on the compensation policy developed by the compensation committee and approved by the company board. The compensation policy comprises specific short-term and long-term financial and non-financial criteria for evaluation.

In 2017, 53% of the total income of the BGEO Group top manager was a fixed salary (2,726,000 USD), and the remaining income of 2,044,000 USD came from bonuses.

In the same year, the ratio of fixed salary to bonuses of the TBC Bank top manager was 25% (1 million USD). Consequently, 3 million USD of his income came from bonuses.