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Wed 18 May 2011 09:04 AM

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EFG Hermes to cut bonuses in bid to slash costs

Egypt investment bank aims to slash overall costs by more than 20% this year

EFG Hermes to cut bonuses in bid to slash costs
EFG Hermes, one of the Arab world’s largest investment banks, also said it had appointed Seif Fikry as chief executive officer for the Gulf states

Egyptian investment bank EFG Hermes said Tuesday it will slash
bonuses in a bid to trim costs by more than 20 percent in 2011,

“As part of a strategy to make the organization
leaner and with a target of cutting costs in 2011 by over 20 percent, the firm
has elected to be aggressive with cuts to its bonuses in 2010,” the company
said in an emailed statement.

“[The bank] is fully aware of the possible implications of
this stance on certain individuals.”

EFG Hermes, one of the Arab world’s largest investment
banks, also said it had appointed Seif Fikry as chief executive officer for the
Gulf states, excluding Saudi Arabia.

Fikry has worked for the Cairo-based bank for 14 years,
previously serving as managing director and head of securities brokerage in the
UAE and Oman and spearheading the company’s brokerage business for five years
in the Gulf.

He replaces Philip Southwell who, it was reported this week,
has been poached by Bank of America Merrill Lynch to run its business in the
MENA region.

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