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GCB Shareholders reject GHS4m remuneration for board

Board of GCB
Board of GCB

Angry shareholders of GCB have rejected a decision of a new Board of Directors to increase their remuneration from GHS2.5 million annually to GHS4 million annually, representing 64 percent surge.

Some of the shareholders who were not enthused about the proposed increase voted overwhelmingly against the motion at an Annual General Meeting(AGM) held in Accra.

Making suggestions on the floor, some demanded for reasons in the increase since the old board which was dissolved this year last increased their remuneration in 2013.

The Board Chairman, Mr. Jude Kofi Arthur after a brief consultation with other members on the board suggested a head count of  the shareholders against the motion, but beat a retreat, upholding the decision.

“The board proposes fees, the board is appointed by the shareholders to run the affairs of the company, and therefore all key issues as stated in law, it must come to the  shareholders for approval. The directors did the right thing by looking at the economy and proposing benchmarks for approval by the shareholders. The shareholders by their wisdom looked at it and felt by show of hands that they will not approve it.  We have to go and look at it and then come back to them,” he said.

Mr. Arthur admitted that the rejection may have been caused by the inability of some shareholders not receiving an earlier report dispatched to them via mail as required by the Ghana Stock Exchange.

Some shareholders at the AGM

Some shareholders at the AGM

Meanwhile, the bank has announced GHS1.1 billion income for its operations in 2016, representing a 24 percent increase. This is compared to GHS 863 million  recorded in 2015.

The bank also recorded a profit after tax of 318 million cedis in the same period under review, indicating a 25 percent increase compared to 2015.

The new Board assured that it will expand its branches to post good results this year.

The Board declared a dividend of  38 pesewas per share amounting to GHS100,700,000.

By: Lawrence Segbefia/citibusinessnews.com/Ghana

Ghana Business News