REUTERS

Bank NY's Renyi 1999 pay cut due to Russia probe

NEW YORK, March 31 (Reuters) - The Bank of New York Co. Inc. said on Friday it paid its chairman and chief executive, Thomas Renyi, less last year than he made in 1998 because of the bank's role in a massive Russian money-laundering probe.

Renyi earned about $6.75 million last year, plus options, down from about $7.55 million in 1998, as the bank came under investigation for allegations Russian businessmen and suspected mobsters illegally pushed $7 billion through its branches.

The banking company, whose flagship Bank of New York is one of the oldest commercial banks in the country, was not charged with any crime. But the company agreed to periodically report on money transfers to U.S. regulators. A former bank executive and her husband have pleaded guilty.

The Bank of New York Co. said in a proxy filing with regulators Renyi had no direct responsibility for what happened and exercised strong leadership, but it noted that a chairman has ultimate responsibility at a company.

Consequently, Renyi's bonus fell last year, the firm said.

"In view of the Russian-related funds transfers inquiry and related supervisory actions, the compensation and organization committee has further reduced Mr. Renyi's bonus by 50 percent or $931,000," The Bank of New York Co. said in the proxy.

Renyi received $850,000 in salary in 1999 and a $5.73 million bonus, as well as $167,819 in other income. This was down from a salary of $850,385 in 1998, and a $6.53 million bonus and $166,150 in other compensation, the bank said. <BR>

In 1999, Renyi also received 500,000 stock options that would be worth $11.18 million if the company's share price were to rise 5 percent annually, and $28.34 million, if it rose 10 percent a year. In 1998, he was awarded 500,000 stock options as well.

Bank of New York stock rose 2-1/4 to 41-9/16 a share Friday in New York Stock Exchange trading.

16:29 03-31-00