Immofinanz Pays Top Managers $3.7 Million of Turnaround Bonuses
Immofinanz AG (IIA), the Austrian developer that verged on collapse in 2008, paid managers led by Chief Executive Officer Eduard Zehetner a bonus this year for restoring the company to profitability.
Zehetner and two board members in charge since 2008, Manfred Wiltschnigg and Daniel Riedl, received 3 million euros ($3.7 million) between them in May, Immofinanz said in its annual report today. Their individual holdings in the company weren’t disclosed.
“Immofinanz Group was successfully directed out of the life-threatening crisis in the 2008/09 financial year, and equity and the net asset value were substantially increased,” Immofinanz said in the report. “Furthermore, dividend payments were made possible.”
Immofinanz, based in Vienna, came close to bankruptcy after the September 2008 collapse of Lehman Brothers Holdings Inc. roiled global markets. Zehetner and his colleagues merged the company with its eastern European unit, Immoeast AG, froze expansion plans, settled disputes with former affiliates and sold assets to build up cash reserves.
Immofinanz trades at more than nine times its 28-cent low in November 2008, and dividend payments resumed last year. The shares have gained about 15 percent this year.
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