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.
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