… Courage at Avax: Fee of €2.56 million for the five executive members

Over the past year, the five executive members and senior management personnel have been at the same time afax building.

These mixed fees, of which a very small part (€82,306) constitute corporate benefits, were directed unevenly: to the president Christos Ioannouvice president Konstantinos Couvaraschief executive officer Konstantinos Metzalisas well as for members Konstantinos Lysaridis And Anthony Metzaliswho happens to be the CEO’s son.

the total profits Of the administrative five correspond to approx 12.3% of total profits Which arose last year from the continuing activities of the business group. The result obtained after deducting cost of sales from revenue was €20.9 million.

For 2021, these correspondences were formed by 8.4%, with total profitability of €31.6m, while the salaries of senior executives rose to €2.661m in total.

Comparative data for 2020 was significantly lower, when the €2.096 million received by the same five Avax executive members corresponded to 3.9% of the €53.2 million gross profit brought in by spoken sales.

Based on the total operating and disposal costs that burdened Avax last year (41 million euros), the five management fees in 2022 are “explicit” of 6.2%. It is equivalent to the combined annual averages salaries of 70 employees. They were worth 36,666 euros each last year.

Decisively supported by sales of “silver” (Volterra and properties in the Rio-Antirio Bridge), the Avax Group managed to record a net profit last year of €12.9m from continuing operations and another €27m from those discontinued. At the same time, loan liabilities decreased by 135.3 million euros, while net borrowing fell to 220.4 million from 328.3 million euros.

On the stock exchange’s “dashboard”, Avax stock is up 31% since the start of this year, with gains equal to that of the general index.

How is the earnings puzzle formed?

As indicated in the remuneration report submitted to the General Assembly, the remuneration of the President, Christos Ioannou It was 251,984 euros last year. At the same levels as the previous year, but upgraded strongly compared to the 110K it received in 2020.

The total pay last year for the vice president was €594,362, Constantino Covaras. His fixed income was €300,000 from the parent company and another €580,000 from the group’s subsidiaries.

chief executive officer , Konstantinos Metzalis Which … traditionally carries the scepter in pay, last year received 922,869 euros. Of these, 495,000 are fixed fees from the parent company and the same amount from subsidiaries. In 2021, due to the Extraordinary Bonus, the CEO’s total pay amounted to an additional €86,089.

to Konstantinos Lysaridis, an executive member, last year’s total pay was €519,329, inclusive. With his fixed fee coming from a subsidiary of the group and a level of €510,000.

the Anthony Metzalisthe fifth consecutive Avax executive member received €203,763, with his fixed wage (from group companies) being €195,000.

Prominent in the puzzle of 100% subsidiaries is ETETH (Thessaloniki Technical Enterprises Company), which since 2000 has been attached to Avax, forming its business arm in Northern Greece. One of the founders, but also a former ETH contributor, Konstantinos Metzalis, now holds the administrative reins as CEO. Having at his side for a number of years is Konstantinos Lysaridis, in the position of Vice President, as well as his son, Antonis Metzalis, who belongs to the senior management team.

In the Avax Board of Directors, in addition to the 5 executive members, there are also 5 other non-executive members, whose total fees for the past year amounted to 225,000 euros.

New payment, rewards and buyback policy

At the next General Assembly on June 14, shareholders’ approval of, among other things, the company’s new bonus policy will be considered. which saves that file Fixed salary cap At group level €900,000 for the CEO and €600,000 for each of the other executive members. On first reading, this means that the CEO’s current salary will be reduced by €90,000, while it is not known whether and to what extent the fixed salary will be promoted to one or more of the other four executive members.

With the new bonus policy, the Bonus rule Efficiency gains for all Avax Executive Members (in the form of offering cash or other financial instruments) amounting to up to 100% of their fixed salary. While under conditions it can be doubled.

In addition, in June 2021, the General Assembly approved a three-year program Free disposal 4,000,000 shares for unauthorized executives. The shares involved have not yet been allocated, while the current Market value For them 3.984 million euros.

The 24-month term is also expected to be approved at the new General Assembly Buyback program private equity. The buyback program concerns the purchase of up to 10,000,000 shares (6.928% of the current total) at a price range from half to €4… when the share is at €0.996. The company has not yet said whether these share buybacks will be canceled or given as performance bonuses to executives or other employees.

Who and how much will receive from the dividends

Be that as it may, the entire outline of the initiatives (as shaped by the salary scale, performance bonuses, but stock buybacks) show… courage in the financial sense of the term.

Clearly, senior management is inspired by optimism about Avax’s next steps. which are not currently identifiable in the financial statements. Primarily in the business of making organic profits, not with the help of asset sales.

At least so far.

The courage of the top five management is also “imprinted” in the upcoming dividend of €10.1m (€0.07 per share before tax) after many years of … drought.

Since the five executive members of Avax own a total of 63.25% of the company’s shares, they will receive €6.37 million from this cash dividend.

The 51-year-old is the shareholder leader Christos Ioannou It owns 33.3% of the construction group, as a result of which profits of 3.36 million euros are allocated to it. Other members of the Ioannou family, as well as Christodoulos’ relatives, also have a minority stake in this portfolio.

In a recent presentation made at the Institutional Union, the family of the 68-year-old Thessaloniki resident Constantino Metzalis He appears to own 19.8%. Which profit shares to be collected amount to around 2 million euros, always before taxes.

In the same family ratio offer Solid, strong 9.1%, which results in a dividend of around €920,000.

Also Thessalonians Konstantinos Lysaridisas shown in the company’s accounting statements, has 1,375,289 shares (0.95%) which translates to a collection of €69,000 in cash dividends.

8.5% shareholder is also Stelios Christodoulou, the maternal first cousin of Christos Ioannou, who does not participate in the board of directors. from Avax. However, €858,500 in dividends has been paid out to him.

for the rest 4,100 shareholders The minority, which cumulatively controls 28.7%, will have profits of just under €2.9 million marginally. Before tax, which is 5%, and is mostly borne by the local wallets of individuals.

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