BBK Annual Report 2011 - Executive Management Information

Executive ManagementAbdulkarim Ahmed BucheeryChief ExecutiveBSc, University of Aleppo, Syria (1976)34 years banking experienceJoined BBK in 2002Rashed Salman Al KhalifaGeneral ManagerBusiness GroupMBA, Arizona State University, USA (1982)29 years banking experienceJoined BBK in 2008Reyadh Yousif SaterGeneral ManagerShared Services GroupMBA, University of Glamorgan, UK (2001)34 years banking experienceJoined BBK in 1978Mahmood Abdul AzizAssistant General ManagerOperationsExecutive Management Diploma, Universityof Bahrain. Gulf Executive ManagementProgram, University of Virginia, USA40 years banking experienceJoined BBK in 1976Adnan A. Wahab Al ArayyedHead of Credit ManagementBSc, Beirut Arab University, Lebanon (1984)30 years banking experienceJoined BBK in 1983Rashad AkbariAssistant General ManagerTransactional BankingMSc, Marketing, University of Stirling, UK (1997)25 years work experience, of which11 years in bankingJoined BBK in 2000BBK Annual Report 2011Axel HofmannAssistant General ManagerRetail BankingMBA, University of Texas, USA (1991)21 years banking experienceJoined BBK in 2007Mohammed Abdulla IsaAssistant General ManagerFinancial Planning and ControlCertified Public Accountant, American Instituteof Certified Public Accountants – Delaware StateBoard of Accountancy (2001)20 years finance experienceJoined BBK in 2001Amit KumarAssistant General ManagerRisk, Compliance and Legal AffairsMBA, India Institute of Management (1983)28 years banking experienceJoined BBK in 199428

Khalil Al MeerAssistant General ManagerCorporate BankingBSc, Business Administration,University of Bahrain (1985)26 years banking experienceJoined BBK in 1989Jamal Al SabbaghAssistant General ManagerInformation TechnologyMBA, University of Glamorgan, UK (2001)31 years banking experienceJoined BBK in 1980Abdul Hussain BustaniAssistant General ManagerHuman Resources and AdministrationHigher National Diploma, Civil Engineering,Trent University, UK (1978)36 years work experience, of which22 years in bankingJoined BBK in 1988Abdulrahman SaifAssistant General ManagerTreasury and InvestmentPhD, Economics, University ofLeicester UK (1992)29 years banking experienceJoined BBK in 2008Ashish SarkarAssistant General ManagerInternational BankingMBA, Indian Institute of Management (1990)21 years banking experienceJoined BBK in 1997BBK Annual Report 201129

Organisation informationBOARD OF DIRECTORS مجلBOARD COMMITTEESAuditCommitteeExecutiveCommitteeNomination, Remuneration andCorporate Governance CommitteeBoardSecretariatInternalAuditCHIEF EXECUTIVEكريدCrediMaxCapinnovaInvestmentBankSUBSIDIARIESInvitaBUSINESSGROUPRetail BankingTreasury and InvestmentTransactional BankingCorporate BankingInternational BankingKuwait BranchSHAREDSERVICES GROUPInformation TechnologyHuman Resourcesand AdministrationOperationsProject Management OfficeCreditManagementRisk,Complianceand LegalAffairsFinancialPlanningand ControlMANAGEMENT COMMITTEESAsset and LiabilityManagementSenior HumanResourcesProvisionRiskManagementStrategyReviewManagementCreditNotes:(i) The branches in India and the Representative Office in Dubai report to the International Banking Division.(ii) The Assistant General Manager of Risk, Compliance and Legal Affairs (RCLA) participates in the Board and / or Executive Committee meetings whenever risk issues are discussed. TheHead of Compliance and Money Laundering Reporting Officer (MLRO) reports to the Assistant General Manager of RCLA, and has access to the Management and presents quarterlycompliance reports to the Audit Committee.BBK Annual Report 201130Remuneration PolicyBBK employee remuneration framework aims at providing aneconomically competitive level of compensation to attract and retaintalented employees. In its endeavour to achieve this, the Bankmaintains the level of overall compensation at the upper quarterpercentile line of the Bahrain banking industry with specific reference tothe premier commercial banks. The Bank’s reward policy is meritocracybased system, linking reward to performance through a performancemanagement system that recognises the value of each job in theorganisation and focuses on creating a performance driven culture.Executive Management remunerationFixed and Variable PayThe total remuneration of the Executive Management team in 2011was BD 4,159,431. This amount includes the guaranteed cashcomponents such as the basic salary, fixed bonus allowancesand the variable performance reward related to 2010.Employee Performance Share Plan (EPSP) AwardsThe total accumulative number of shares granted under the EPSP tothe eligible members of the Executive Management as at end of 2011was 2,414,906 shares. The vesting of the awarded shares will besubject to satisfactorily achieving the target performance conditions.Subsidiaries Board RemunerationMembers of the Executive Management who represent the Bankas Directors on the Boards of wholly owned subsidiaries and /or associate companies received a total amount of BD 200,197as remuneration and sitting fees for their contribution in therespective subsidiary or / and the associate company in 2010.Executive Management interestsThe number of shares held by members of the ExecutiveManagement team as of 31 December 2011 was as follows:Name Type of shares 31 Dec 2011 31 Dec 2010Mahmood Abdul Aziz Ordinary 7,976 7,976Jamal Al Sabbagh Ordinary 6,208 6,208Executive Management trading of Bank’sshares during the year 2011No Trading.Management CommitteesManagement Committees are chaired by the Chief Executive.Committee members are heads of the relevant divisions appointedby the Committee Chairman.Committee Summary terms and referenceAsset andLiabilityManagementSenior HumanResourcesProvisionRiskManagementStrategyReviewManagementCreditEstablishes policies and guidelines for the overallmanagement of the statement of financial position and itsassociated risks.Frequency of meetings: At least once a month.Establishes appropriate policies, procedures and guidelinesfor the management of human resources.Frequency of meetings: Once every other month.Reviews and establishes provisioning requirements forloans, advances and investments.Frequency of meetings: Once every quarter.Identifies, measures, monitors and controls risk byestablishing risk policies and procedures.Frequency of meetings: Once every other month.Reviews and monitors progress on strategic initiatives.Frequency of meetings: Twice a year.Approves credit and investment proposals above a certainlimit. Also reviews and recommends any proposal requiringExecutive Committee or Board approval.Frequency of meetings: Once a week.

Long Term Incentive PlansThe BBK Long Term Incentive Plans are share based rewardschemes, under which the Bank allocates certain numbers ofshares every year to executive management employees basedon performance, potential, and job criticality level. The grant priceis determined according to the share price at the closing of themarket on the fourteenth day after the Annual General Meeting.There are two forms of the Employee Long Term Incentive Plans:Employee Stock Options PlanThis plan was introduced in 1999 and options were granted on ayearly basis until 2009. The plan will end once all options grantedtill 2009 expire or vest. In 2010 the Bank has opted to introducea new performance shares plan approved by the shareholders.Employee Performance Shares PlanThe scheme was introduced effective 2010. The plan operates ona yearly basis of shares being allocated and held in a trust in thename of the individual employee over the vesting period. Followingthe assessment of the performance of the Bank against the targetperformance conditions stipulated for the period, the ownership of thevested shares is transferred to the individual employee.Major BBK shareholdings as of 31 December 2011Number of sharesName / EntityNationality /Head QuarterLegal statusOwnershipdate % Previous CurrentCompanies listed on the Bahrain Bourse (5% and above)Bahrain Kuwait Insurance (BKIC) Bahrain B.S.C. (c) 2006 6.82% 4,436,215 4,436,215Securities Investment Company Bahrain B.S.C. (c) 2006 9.89% 41,250,000 41,250,000Bahrain Commercial Facilities Company Bahrain B.S.C. (c) 1994 23.00% 37,618,691 37,618,691Major shareholders of the company’s outstanding shares (5% and above)Ithmaar Bank Bahrain B.S.C. 2008 25.34% 215,736,187 215,736,187Pension Fund Commission (PFA) Bahrain Governmental Institution 1986 18.79% 159,943,766 159,933,766Kuwait Investment Authority (KIA) Kuwait Investment Company 1990 18.70% 159,073,547 159,173,547Social Insurance Organization (GOSI) Bahrain Governmental Institution 1986 13.34% 113,490,122 113,573,255The Bank’s holdings in other companies (Quoted / unquoted in / out Kingdom of Bahrain) (10% and above)CrediMax Bahrain B.S.C. (c) 1999 100.00% 5,000,000 5,000,000Invita Bahrain B.S.C. (c) 2006 100.00% 500,000 500,000BBK Investment Fund Company Bahrain B.S.C. 1997 100.00% 53,000 NilGlobal Payment Services * Bahrain W.L.L. 2005 55.00% 10,000 10,000Sakana Holistic Housing Solutions ** Bahrain B.S.C. (c) 2006 50.00% 10,000,000 10,000,000Capinnova Investment Bank Bahrain B.S.C. (c) 1999 100.00% 125,000,000 125,000,000The Benefit Company Bahrain B.S.C. (c) 1997 22.00% 3,960 3,960EBLA Computer Consultancy ** Kuwait K.S.C.C. 2010 36.36% 13,333,334 13,333,334Naseej Company Bahrain B.S.C. 2009 13.89% 250,000,000 250,000,000Alosra Bank Bahrain B.S.C. 2009 10.00% 5,000,000 5,000,000Shared Electronic Banking Services Kuwait K.S.C. 1990 10.00% 900,000 900,000Diyaar Al Harameen Al Ola Limited ** Cayman Islands W.L.L. 2011 35.00% - 1,645,000Saudi MAIS Company for Medical Products ** Saudi Arabia W.L.L. 2011 24.00% - 8,250* Shareholding through CrediMax** Shareholding through Capinnova Investment BankBBK offices and international branchesHeadquarters43 Government AvenueP.O. Box 597ManamaKingdom of BahrainTel: +973 17 22 33 88Fax: +973 17 22 98 22Cable: BAHKUBANKTelex: 8919SWIFT: BBKUBHBMKuwaitAhmed Al Jaber AvenueP.O. Box 2439613104 SafatState of KuwaitTel: +965 2241 7140Fax: +965 2244 0937MumbaiP.O. Box 11692Jolly Maker Chambers II225 Nariman PointMumbai 400021Republic of IndiaTel: +912 22 282 3698Fax: +912 22 204 4458+912 22 284 1416Hyderabad6-3-550 L B BhavanSomajigudaHyderabad 500482Republic of IndiaTel: +914 02 339 8219Fax: +914 02 337 5977DubaiRepresentative OfficeCreek TowerOffice No. 18AP.O. Box 31115Dubai, UAETel: +971 4 221 0560+971 4 223 7156Fax: +971 4 221 0570BBK Annual Report 201131