Share Re-Allocation and Board Changes
La Hulpe, 9 March 2015 - SWIFT announces that it has completed its regular three-yearly share reallocation exercise, resulting in the re-allocation of approximately 10 percent of the shareholding, and a change to the jurisdictions represented on SWIFT's Board.
Shareholdings in SWIFT are determined by a formulaic share re-allocation that is carried out at least every three years and which is based on usage of SWIFT's network services. The more SWIFT users contribute to SWIFT network services, the larger their shareholding in SWIFT becomes at the next share re-allocation. The 2015 reallocation has been based on the use of network services in the period 1 January to 31 December 2014.
The combined usage by a jurisdiction's SWIFT shareholders determines the number of Board Directors that the jurisdiction is entitled to, ensuring that the composition of the Board reflects SWIFT's shareholders around the world. Depending on a jurisdiction's shareholder ranking, it may propose 1 or 2 Directors (1) to the Board (2).
Following the 2015 share re-allocation exercise, the Board seat allocation will be as set out below:
SWIFT's shareholdings and Board composition are designed to reflect usage of SWIFT network services, ensure SWIFT's global relevance, support its international reach and uphold its strict neutrality. Since SWIFT's inception in 1973, many economies around the world have grown and integrated themselves into international trade and finance flows, and have been incorporated into the SWIFT community.
SWIFT shareholdings are determined by a set formula, and the nomination process and the composition of the Board follow rules set out in SWIFT's by-laws.
Once the proposed nominees have been vetted by the Board, they are elected as Board Directors by SWIFT shareholders at the Annual General Meeting for a renewable three-year term. The next AGM will be held in June 2015. The new Board members will be confirmed at the AGM, and take up their seats thereafter.
(1) Directors must be employees of Shareholders, or come from organisations deemed related to a Shareholder by the Board of Directors.
(2) Board Seat Allocation:
a. For the largest shareholding jurisdictions ranked 1-6:
Shareholders of each jurisdiction may collectively propose two Directors for election.
b. For each of the ten following jurisdictions, ranked 7 to 16:
Shareholders of each jurisdiction may collectively propose one Director for election.
c. For jurisdictions that are ranked 17 and below:
Shareholders may join with other jurisdictions to propose a Director for election.
The number of Directors proposed by these jurisdictions is limited to three.
SWIFT is a member-owned cooperative that provides the communications platform, products and services to connect more than 10,800 banking organisations, securities institutions and corporate customers in over 200 countries and territories. SWIFT enables its users to exchange automated, standardised financial information securely and reliably, thereby lowering costs, reducing operational risk and eliminating operational inefficiencies. SWIFT also brings the financial community together to work collaboratively to shape market practice, define standards and debate issues of mutual interest.
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