management in enjoying company stock options.

The move, agreed to by company shareholders, was announced at the company's Annual General Meeting yesterday afternoon.

Competing with the growing financial services industry for staff, Bank chairman Eldon Trimingham called the situation "a virtual war'' as he explained the details to shareholders.

"Clear promotion opportunities and fulfilling work environments must be linked with competitive remuneration that includes and ensures a tangible participation, in our case, the Bank's growth, profitability and success, in short, alignment with shareholder interest,'' he said.

Mr. Trimingham also told shareholders that the Bank's goal is "to be the employer of choice'' and that that aim demands "aggressive and pro-active action''. "Any company, including this Bank, that for one minute fails to recognise the seriousness of this never-ending battle to attract and retain good staff, and the consequences of coming out second best, will soon be out of business as a result,'' he said.

The Bank of Bermuda Share Option Plan 2000 sees 3 million shares at a par value of $1 created to fulfil the share options and restricted share options.

A specially appointed committee will determine exactly who will be offered the options. All grants will be made on ratio of four to one between share options and restricted share options.

"The really vital element predominant in these packages has now become tangible participation in the growth of equity of a company by management and staff responsible for that growth,'' Mr. Trimingham said.

The chairman also reiterated the Bank's position to continue their efforts to have the current 60/40 ownership rule relaxed.

"We recognise that this process has been much longer than originally anticipated but believe that the time has been invested wisely in working toward the best solution for the Bank of Bermuda,'' he said.