PRESENTED TO:

MR. ABDUL WAHEED

MALLAH

PRESENTED BY:

SILVIA MUNAWAR
[FA17-MBAR-0011]

CEO COMPENSATION USAMA MAZHER

[FA17-MBAR-0018]

MUBASHRA SIDDIQUE
C ORPORATE GOVERNANCE
[FA17-MBAR-0013]

MUJTABA HASSAN
[FA17-MBAR-0019]

CEO COMPENSATION - Corporate Governance

INTRODUCTION
The Chief Executive Officer (CEO) performance provides value to the organization.

CEO is the principal executive in any organizations, he/she is almost always the

primary leader for the strategy and operations of an organization. His/her salary

and total pay are important components of a company’s executive compensation

strategy. It is important that CEO salary is competitive and that the total

composition of CEO pay provides incentives for performance. It is a strategic

concern to make sure the company is in the best possible position to succeed.

CEO COMPENSATION - Corporate Governance

PURPOSE
The compensation program serves three main purposes.

 It must attract executives with skills, experiences, and behavioral profile

necessary to succeed in the position.

 It must be sufficient to retain these individuals, so they do not leave for

alternative employment.

 It must motivate them to perform in a manner consistent with the strategy

and risk-profile of the organization and discourage self-interested behavior.

CEO COMPENSATION - Corporate Governance

PAY FOR PERFORMANCE
“ High Performance equals increased compensation”

"Pay for performance" is the mantra most companies use when explaining

their compensation plans. A pay-for-performance policy is based on the concept that

a CEO's compensation reflects the performance of the company. Boards desire to pay

CEOs and management teams for good performance.

This concept might be simple, but its implementation is complicated. Different business

situations, for example start-ups, growth businesses, tough industry conditions, must be

determined with the situation in mind. and turnarounds, create very different

compensation challenges. Performance in each instance must be determined with the

situation in mind.
CEO COMPENSATION - Corporate Governance
CONSIDERATION IN SETTING
COMPENSATIONS
A compensation committee should consider many factors in setting a CEO’s
compensation. Important factors include the following:

 The value of the CEO to the Company.

 The company’s capacity to compensate CEO.
 Absolute performance of the company.
 Relative performance of the company.
 Achievement of strategic goals.
 Current trends in the market.
 Internal parity.

CEO COMPENSATION - Corporate Governance

CEO COMPENSATION PACKAGE
Regardless of the difficulties involved, boards must fashion compensation packages
for their CEOs. A CEO compensation package generally consists of the following:

 Base Salary
 Short-term Incentives
 Long -term Incentives
 Fringe Benefits
 Perquisites, or perks

CEO COMPENSATION - Corporate Governance

These Pakistani Bank CEOs Had
the Highest Salaries in 2018
Muhammad Aurangzeb (Habib Bank)

Muhammad Aurangzeb has completed one year in the

Pakistani banking industry. He joined the bank
witnessing a deep financial crisis in 2017 and came with
global experience in banking, being a former JP
Morgan’s banker.
In 2018, the banker spent a colossal amount of Rs. 240
million in 2018,he drew actually an estimated amount of
Rs. 20 million per month as a salary. The bank’s record
for his exact salary was not available.

CEO COMPENSATION - Corporate Governance

These Pakistani Bank CEOs Had
the Highest Salaries in 2018
Sima Kamil (UBL)

Sima Kamil, the first female President and CEO of the

commercial bank, is also the pricey employee for United
Bank Limited as she drew a salary of Rs. 134 million in
2018.
The lady took charge of UBL in a crisis situation in 2017
and successfully moved the bank towards profitability
but the next year proved to be upsetting for the bank
under her leadership. The profit of the bank decreased
to Rs. 15.5 billion in 2018 as compared with Rs. 25 billion
reported in 2017.

CEO COMPENSATION - Corporate Governance

These Pakistani Bank CEOs Had
the Highest Salaries in 2018

Nouman Ansari (Bank Alfalah)

Nouman Ansari, President and CEO Bank Alfalah is also

one of the highly paid bankers of Pakistan’s banking
industry. He drew an annual salary of Rs. 108 million in
2018. Nouman replaced Atif Bajwa in 2017.

He sustained the performance of the bank and

remained in the green. In 2018, the bank posted a profit
of Rs. 10.9 billion with the year-on-year growth of 27
percent.

CEO COMPENSATION - Corporate Governance

These Pakistani Bank CEOs Had
the Highest Salaries in 2018
Irfan Siddiqui (Meezan Bank)

A down-to-earth President and CEO of Meezan

Bank, Irfan Siddiqui is also among the highest paid
bankers.  Under his leadership, the bank continued
to excel with lots of achievement.

In 2018, the bank also recorded a growth of 42

percent in profits year-on-year under his leadership.
He drew a salary of Rs. 74.75 million in 2018 which is
Rs. 0.9 million higher than in 2017. When it comes to
evaluating the performance of the President, he
deserves a higher salary.

CEO COMPENSATION - Corporate Governance

CEO COMPENSATION - Corporate Governance