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VietNamNet Bridge – While businesses moan about big losses and heaped debts,
banks still make fat profit, thus allowing their bosses to pocket millions of
dollars a year.
With eight members of the board of directors and three members of the
supervision board, each member would get 4 billion dong in pay in 2012.
As for VIB Bank, the pay of one percent of pretax profit has proposed for the
members of the board of directors and the supervision board. Meanwhile, the pay
would not be lower than 13.3 billion dong in any cases.
A lot of shareholders expressed their dissatisfaction about the proposed pay
levels, saying that the levels are overly high if compared with the pay by big
enterprises which have the profits higher by 2-3 times than VIB.
The dissatisfaction of shareholders has been anticipated, because the pay for
“VIP” is always inversely proportional with shareholders’ dividends. If banks
pay higher to VIP, the sum of money reserved for paying dividends would be
lower.
The pay by big joint stock banks, where the State holds controlling stakes,
prove to be lower than that in private banks, but the incomes of the bosses are
still very high.
Vietcombank, for example, plans to pay 0.28 percent of post tax profit, or 13.9
billion dong, to VIPs in 2012. Explaining the suggested pay level, the bank said
it considers the basic business targets, the number of the members of the board
of directors, and refer to the pay levels paid by some other banks.
In 2011, the bank’s VIP also received 0.28 percent of the post tax profit, or
11.8 billion dong.
As for Vietinbank, with the targeted pretax profit of 9 trillion dong, the
managers of the bank have proposed the pay for the board of directors and
supervision board at 0.3 percent of post tax profit.
Meanwhile, the Bank for Investment and Development of Vietnam BIDV plans to pay
19 billion dong to its VIPs in 2012.
High proposed pay to VIP discontent small shareholders
Most commercial banks intend to either keep the pay levels unchanged or raise
the pay to the board of directors and supervision board, saying that 2012 would
be a very tough year for banks, which means that the managers would bear a hard
pressure in their works and they need to be rewarded adequately.
The high suggested pay to banks’ bosses has raised strong opposition from small
shareholders, who said that in principle, the income should be lowered in the
context of economic difficulties, and it would be unreasonable if the bankers
take full advantage of the current difficulties to require big money.
Nguyen Hoang, a small shareholder of a private bank in Hanoi, has complained
that the bank’s boss nearly ignores shareholders’ interests. He said that the
bank only pays low dividends to shareholders every year, while the pay to
important persons of the bank is always sky high.
“Even though we feel discontented about the profit sharing, we can do nothing,
because the law does not protect the small shareholders like us,” Hoang said.
Meanwhile, a member of the board of directors of a bank said in fact, he and
other members of board of directors do not rely on the pays to live. He said
that in return for the high income of nearly 100 million dong a month, they have
to work hard and take responsibility for the banks’ operation.
A US dollar is equal to 21,000 Vietnam dong.
Source: Tien phong
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