Bloomberg News

Erste Says Reduced Management Bonuses for 2010 by About 35%

October 28, 2011

Oct. 28 (Bloomberg) -- Erste Group Bank AG reduced its management board’s bonus payments retroactively by about 35 percent after the group restated its 2010 profit due to a reclassification of credit default swaps, the bank said today.

The reduction by about 2 million euros ($2.8 million) was done because the bonuses had to be recalculated, spokesman Michael Mauritz said by telephone. Erste restated its 2010 profit to 988 million euros, compared with 1.12 billion euros as reported earlier.

Most of the difference is caused by a retroactive markdown of CDS to market prices that was announced Oct. 10, Erste said. The bonus cut was first reported by the Austrian Press Agency.

To contact the reporter on this story: Boris Groendahl in Vienna at bgroendahl@bloomberg.net

To contact the editor responsible for this story: Jonathan Tirone at jtirone@bloomberg.net


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