The biggest payoff surprise came from Habib Bank Limited (HBL). HBL was hit in New York with a hefty $ 225 million fine for failing to comply with risk management rules. The departing CEO Nauman K. Dar, however, still managed to earn a lot of money as compensation and other bonuses.
As of 2016, a CEO earned 52.5 times – Rs 77 million – more money than an average banker.
Let's look at the amounts that the CEOs of top banks made in 2017.
United Bank Limited (UBL): UBL & # 39; s CEO was the best earner among all executives of the main commercial banks. The CEO received an amazing Rs of 216.23 million in 2017 as a salary alone – an increase of 50% compared to last year.
UBL saw a change of command in 2017, when the share price fell by 22.3 percent in 2017. The outgoing CEO, Wajahat Hussain, earned Rs 51.3 million as "departure costs", apart from his salary of Rs 144.1 million. Sima Kamil, the upcoming CEO and Wajahat jointly made Rs 216.3 million as an annual remuneration in 2017.
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Bank Alfalah & # 39; s ] CEO saw an increase of 17.5% in the payout and in 2017 managed to take Rs 119.46 million home.
Bank Alfalah also witnessed a three-year change in 2017. Atif Bajwa resigned as CEO in July 2017 and received a massive payment of Rs 694.47 million.
Nauman Ansari then filled his shoes with an annual salary of Rs 101.6 million. Bank Alfalah was the only commercial bank among the top banks whose share price rose by 10.6% in 2017.
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Habib Bank Limited: HBL lost about 78 % in terms of profit in 2017 compared to 2016. The bank achieved Rs 7 billion profit in 2017 compared to Rs 31.8 billion it earned in 2016.
The loss was mainly due to the fine that a US regulator imposed on the bank. The CEO of HBL was not affected by the huge losses the bank suffered. In 2017, he received Rs 99.32 million as salary, excluding other bonuses and compensation. The CEO saw an increase of 22.1% in salary in 2017.
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Nauman K. Dar received a total payment of Rs 345 million during his last year as HBL CEO in 2o17. His income increased by about 27% compared to 2016 despite the fact that HBL lost 78% in the same time. Here is a breakdown of Dar's payout;
- Salary: R 100 million.
- Leave reversal: Rs 45 million.
- Long-term benefits: R 30 million.
- Short-term benefits: Rs 170 million.
The short-term benefits come from the evaluation of the employees and the performance of the bank during the year – a bonus of Rs 170 million came from the performance of the Bank in 2016. Dar received in 2016 Rs 160 million for the performance of HBL in 2015. No bonus was awarded to the ex-CEO for 2017 as HBL lost 5% of its net assets during the period.
Muslim Commercial Bank: The chief executive of MCB earned Rs 94.44 million in 2017 with an annual increase of 5.9%. MCB's share price fell by 11.6% in 2017.
National Bank of Pakistan: NBP & # 39; s CEO earned 59.9 million Rs in 2017 with an increase of 19.9% over last year. NBP lost 37.36% value in terms of its share price.
Allied Bank: Allied Bank & # 39; s senior official saw a decrease of a substantial 22.3% in the annual salary. The Chief Executive, however, still managed to take home a decent Rs 45 million paycheck in 2017. The share price of Allied Bank fell by 30% in 2017.
State Bank of Pakistan & # 39; s Guidelines
SBP has underlined several guidelines that show that the bonuses of the CEO should reflect the bank's performance. The bonuses must disappear if the bank does not perform well and vice versa. SBP & # 39; s guidelines say:
A moderate or negative financial performance of the institution should generally lead to a significant reduction of the institution's total variable remuneration, taking into account both the current fees as the previously earned and withheld amounts in the context of deferred compensation plans.
Despite all the guidelines, it seems that the CEOs do not feel any effect from the poor performance of a bank. The shareholders of banks also seem not to be bothered by the hefty rewards of CEOs.
The post These Are the Highest Paid Bank CEOs in Pakistan appeared first on News Doses.