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Total remuneration of the National Bank of Pakistan (NBP)
president increased 51% in 2015 despite the share price of the
state-owned bank plummeting 22% over the same 12-month period.
According to the bank’s annual securities filing, NBP President Syed
Ahmed Iqbal Ashraf received total compensation of Rs71.1 million last
year, which was Rs23.9 million higher than the comparable figure for
2014.
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Highest paid CEO
United Bank President and CEO Wajahat Husain topped the list with his
total compensation in 2015 clocking up at Rs127.3 million. A
year-on-year comparison of the UBL CEO’s total remuneration is not
possible because the figure for 2014 (Rs246.5m) included Rs100.7 million
paid as severance cost to its former CEO on the cessation of his
employment.
Husain added almost Rs3.8 billon to UBL’s bottom line in 2015, as the
bank’s unconsolidated profit for the year rose 17.3% to clock up at
Rs25.7 billion. The share price of UBL, however, declined 12.3% over the
12-month period amid bearish trends on the local bourse.
Even if rent, utilities and medical allowances are excluded, the annual
managerial remuneration of the UBL CEO translates into a compensation of
over Rs9 million per month for 2015.
UBL was the third most profitable bank in the country until 2014. But
its net profit surpassed that of MCB Bank last year, making UBL the
country’s second most profitable bank. |
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HBL
Another bank CEO who received a major raise last year in his total
remuneration was Nauman Dar of Habib Bank (HBL). His total remuneration
jumped 41.3% in 2015 to reach Rs75.1 million. Meanwhile, the share price
of HBL dropped 7.4% to reach Rs200.12 on Dec 31, 2015.
HBL is the largest banking entity in Pakistan in terms of both
profitability and branch network. Its net profit went up 14% last year
to reach Rs35.4 billion, which was Rs9.7 billion higher than its closest
competitor. |
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MCB Bank
MCB Bank CEO Imran Maqbool was the second-best paid among the CEOs of
the Big Five cohort. His total remuneration for 2015 clocked up at
Rs84.7 million, up 14.9% from a year ago. However, the share of MCB Bank
shed as much as 29% over the same 12-month period.
The year-on-year decline in the share price of MCB Bank was far greater
than the corresponding drop in share prices of the rest of the largest
banks. MCB Bank’s unconsolidated profit for 2015 amounted to Rs25.5
billion, up 5% from a year ago. |
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NBP
Total remuneration of the National Bank of Pakistan (NBP) president
increased 51% in 2015 despite the share price of the state-owned bank
plummeting 22% over the same 12-month period.
According to the bank’s annual securities filing, NBP President Syed
Ahmed Iqbal Ashraf received total compensation of Rs71.1 million last
year, which was Rs23.9 million higher than the comparable figure for
2014.
Meanwhile, the share price of NBP at the end of 2015 clocked up at
Rs54.04, down 22.2% from the beginning of the year when it sold at
Rs69.46.
Almost one-third of Ashraf’s total remuneration in 2015 was in the form
of bonus. His bonus for 2015 clocked up at Rs23.3 million, which was 9.4
times higher on a year-on-year basis.
Although the share value of NBP declined by more than one-fourth over
the year, the unconsolidated profit of the bank surged 27.9% to Rs19.2
billion for 2015. In percentage terms, NBP posted the highest
year-on-year expansion in the net profit among the five largest
commercial banks, also known as Big Five.
Although Ashraf received the highest raise in the total remuneration
last year, he was hardly the highest paid bank CEO in Big Five. |
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ABL
Allied Bank (ABL) CEO Tariq Mahmood received total remuneration of
Rs46.3 million in 2015, up 7% from a year ago. His total compensation
for 2015 was the lowest among his peers at the other four banks.
The share price of ABL declined more than 17% last year while its net
profit amounted to Rs15.1 billion, up only 0.7% from a year ago. Yet he
received a bonus of Rs19 million, which is 41% of Mahmood’s total annual
compensation for 2015.
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