Ironically shareholders, most of whom are engaged in business with the major commercial and insurance Group, did not oppose the FBC Board agreeing not to declare a dividend for the coming year.
FBC Board members currently earn $260 029 in cash up fom $190 877 earned for the year ended December 31, 2010.
In total, the more-than 13 member Board bosses earn $1 291 857 annually in Director's remuneration, up from $545 684 gobbled for the year ended December 31, 2010.
The commercial banking, property and insurance entity, meanwhile spent $3 549 747 in retrenchment costs during the year under review.
The Group has a salary and allowances bill amounting to $17 102 184, up from $8 069 096 lost for the year ended December 31, 2010.
Conservative estimates show that each Board member is taking home $18 142 in cash annually.
The FBC Bank Board members for the period ended December 31, 2010 included Herbert Nkala (Chairman) and Dr Livingstone Gwata, the outgoing Chief Executive.
Gwata, however, quit in May, this year, saying he was involved in "personal business enterprises" after having spend more than 27 years at the Group.
Company Chairman, Nkala, said: "In this company when one reaches the age of about 60 he or she must consider retiring from the company, and so we wish Dr Gwata well in all his endeavours."
Investigations reveal that Gwata is a current substantial shareholder in bread-making entity Lobels Bread (Private) Limited which is owned by FBC Bank Limited.
Lobels earned $1 571 570 for the year ended December 31, 2010 up from $376 939 earned previously.
It chalked up the biggest amount of cash as compared to the other FBC Bank investments owned by Board members and Directors in 2010.
"The Group carried out banking and investments related transactions with various companies related to its shareholders, all of which were under-taken at arm's length terms and in compliance with the relevant banking regulations," Chairman Nkala said.
The balances with companies related to Directors of FBC Bank Limited and key senior management amounted to a grand total of $1 901 835, up from $574 138 in 2010.
Gwata was immediately replaced by John Mushayavanhu, who said he could not say much because the institution is currently under closed period and if he did say "anything" this could flout standing Zimbabwe Stock Exchange (ZSE) "closed period" regulations.
He, however, revealed workers had been given a 16 percent salary increment down from the 30 percent they had demanded from his Bank.
"We agreed on 16 percent," Mushayavanhu said. "This should also apply in 2012 because we agreed on the prevailing inflation rate in Zimbabwe and not the 30 percent they had demanded from us."
The country's current inflation rate stands at about three percent. FBC Banking Corporation Limited is listed on the Zimbabwe Stock Exchange (ZSE).
It has a market capitalisation of $20 674 978, up from $12 623 465, in December, 2010. The share price currently stands at 6c, but Mushayavahu says he thinks this will soon shoot up to 9c when all its subsidiary earnings are considered.
"We have two companies that are listed on the ZSE right now and they are doing very well," he said. "Our share price is very much under-valued."
The FBC Holdings Limited Board members for the year ended December 31, 2010 were Nkala (Chairman), Dr Gwata (outgoing CEO), Kenzias Chibota, Gertrude Siyayi Chikwava, Phillip Chiradza, Stanley Kudenga, Trynos Kufazvinei, Dr Shingai Munyeza, who quit, James Matiza, Johnson Mawere, John Mushayavanhu (CEO), Godfrey Nhemachena, Webster Rusere, and Nancy Saungweme, who, like Dr Gwata and Dr Munyeza, also stepped down in 2010.
Post published in: Business Analysis