…Marfin says he agreed on policy
Kikis N. Lazarides tendered his immediate resignation from the Laiki Bank Board, effective July 17 citing a policy row with the major shareholders, namely Marfin and the Lanitis family but was immediately countered by Marfin CEO Andreas Vgenopoulos who insists that he took part in all decision making.
Lazarides, who had planned to retire from the Laiki Board and his position as Chairman end of 2006 decided to speed up the process and leave now following comments by new Laiki boss, Vgenopoulos of Marfin Financial Group.
During a press luncheon hosted for Cypriot financial journalists, Vgenopoulos confirmed that Lazarides would be asked to leave if he did not perform, a policy now imposed by the new major shareholders on all top Laiki managers with the objective to boost shareholder value, a statement that must have irked Lazarides.
Vgenopoulos had also mentioned among other comments that the duties of Lazarides were clearly defined, like all other Laiki Board and top managers, leading many to conclude that the days when Lazarides would rule Laiki at his will were long gone.
Policy differences
In his letter to Laiki staff dated July 17, a copy of which has been obtained by the Financial Mirror, Lazarides says he had no other choice but to leave from his post earlier than planned due to serious policy differences with the new major shareholders of Laiki.
The issues on which Lazarides says he differs are the course of the expansion plan, the reorganisation of the group, staffing issues and matters relating to alliances and pacts.
“Unfortunately, now a different mentality and strategy prevails, with which I cannot be associated with,” said Lazarides.
His statement however, was immediately countered by Vgenopoulos who in a separate statement wondered on what policy issues Lazarides differed considering that he had voted unanimously with the other Board members on all new policy and strategy matters.
“It is unfortunate that Mr. Lazarides is ending a distinguished career by making such statements, which will certainly cast a doubt on his motives and probably affect staff sentiment,” Vgenopoulos said in his own statement posted from Greece.
Laiki shares
The row as to who secured the 3% stake from the HSBC sale of its Laiki stake to the Laiki staff at the preferential price of CYP 1.70 per share also continued with Lazarides insisting that the whole affair was made possible because of his intervention and his good contacts with HSBC bosses, while earlier, Vgenopoulos had said that it was Marfin which should receive the credit since it decided to “give” the underpriced shares to staff, instead of disposing of them to institutional investors and book a profit.
Vgenopoulos had said that on the 8% stake sold to the Tosca Fund, Marfin had booked about EUR 3.2 mln in advisory and other fee profit, which it could have also done with the 3% stake sold to Laiki staff.
Lazarides also made particular reference to human resources issues at Laiki and his disagreement on new policy without giving examples, even at a time when Vgenopoulos has said that the new major shareholders will honour all agreements in force between Laiki and the bank employees union, ETYK, but warning top managers (who are not protected by the unions) that unless they perform and follow new policy, they will be told to leave.
The departure of Lazarides from his post at Laiki does not mean that he will abandon public life. On the contrary, said Lazarides in his memo to staff, he will remain as the Chairman of the Board of Directors of the University of Cyprus, the Cyprus Olympic Committee, the Cyprus Cultural Foundation and others that he may assume, without elaborating further.
