YEREVAN. – A variety of encouragement methods are applied in Armenia’s companies. Such matters were discussed during a seminar which is underway Saturday in the capital city Yerevan. 

According to the discussants, however, not all Armenian companies use such methods, and some companies provide shares to the managers as encouragement.   

A participant informed that the senior officials of Armenian banks receive quarterly rewards plus bonuses—based on the annual results—as form of encouragement. And the bank managers allocate themselves large bonuses, but these are not always justified.     

The Basel Committee on Banking Supervision has proposed to all world banks to curtail the bank managers’ bonuses, linking them to the regulatory capital adequacy. In all probability, Armenia likewise will be compelled to make such changes in the banking regulations.     

And according to Professor Oliviero Roggi at the University of Florence, the correct system for manager encouragement is very important in terms of risk management and control.