Dr Arif Alvi has asked the PAC to investigate and justify reason for high salary and bonuses that have been awarded to CEO National Bank of Rs 71.1 Million in 2015. In a letter to Mr Khurshid Shah Chairman PAC that the National Bank is a depository of all the money of the treasury and its profits are related to a captive market....
March 15th 2016
Mr Khurshid Shah MNA
Chairman Public Accounts Committee.
I would like to draw your attention to an issue of high salaries given to CEOs of banks in Pakistan. While the privatised banks may be at liberty to do as they please subject to some restrictions if any by the State Bank of Pakistan, the National Bank where Government of Pakistan deposits all its money has to be governed under different principles.
The CEO of National Bank was paid Rs 71.1 million in 2015 in salary and bonuses which was Rs 23.9 million higher than in 2014. This is despite the share price of the bank dropping down 22% over the same period. His bonuses were 9.4 times higher on a year to year basis. The increasingly huge difference between the salaries of the top executives and the lowest paid employees is of increasing concern throughout the world and it is surprising to see this situation in Pakistan.
This matter may please be investigated and a notice sent to National Bank of Pakistan and the Finance Ministry to provide justification for the same.
Dr Arif Alvi MNA
Member Public Accounts Committee