Some shareholders at the meeting
Angry shareholders of GCB have rejected a decision of a new Board of Directors to increase their remuneration from GH¢2.5 million annually to GH¢4 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.
Some demanded reasons on the floor for the increase since the old board of directors, which was dissolved this year last, increased their remuneration in 2013.
The Board Chairman, 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 attributed the rejection to the inability of some shareholders to receive an earlier report dispatched to them via mail as required by the Ghana Stock Exchange (GSE).
Meanwhile, the bank has announced GH¢1.1 billion income for its operations in 2016, representing a 24 percent increase.
This is compared to GH¢863 million recorded in 2015.
The bank also recorded a profit after tax of GH¢318 million in the same period under review, representing a 25 percent increase compared to 2015.
The new board gave assurance that it will expand its branches to post good results this year.
The Board declared a dividend of GH38p per share amounting to GH¢100,700,000.