This has reference to the article titled ‘Boom for Bank Boards!’ which appeared in the Daily FT dated 23 April 2012. In this regard, we wish to clarify that, there were only nine Directors at the HNB Board as at December 2011. The compensation for Directors for the financial year 2011 was Rs. 116.9 m. This included a ‘one-off’ special payment of Rs. 25 m to a long-standing director on his retirement and was included under terminal benefits.
This payment was disclosed as part of the notes to the financial statements in the 2011 Annual Report. When this non-recurring item is excluded, the compensation for directors including the Managing Director/CEO was Rs. 91.9 m, which is a 12.2% increase over 2010.
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