UBL CEO Wa­ja­hat high­est paid CEO among ma­jor 5 banks

The Pak Banker - - FRONT PAGE - Staff Reporter

To­tal re­mu­ner­a­tion of the Na­tional Bank of Pak­istan (NBP) Pres­i­dent in­creased 51 per­cent in 2015 de­spite the share price of the state-owned bank plum­met­ing 22 per­cent over the same 12month 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 per­cent 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 per­cent 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.

United Bank Lim­ited 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 per­cent to clock up at Rs25.7 bil­lion.

The share price of UBL, how­ever, de­clined 12.3 per­cent 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.

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 per­cent in 2015 to reach Rs75.1 mil­lion. Mean­while, the share price of HBL dropped 7.4 per­cent 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 per­cent last year to reach Rs35.4 bil­lion, which was Rs9.7 bil­lion higher than its clos­est com­peti­tor.

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 per­cent from a year ago. How­ever, the share of MCB Bank shed as much as 29 per­cent 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 per­cent from a year ago.

ABL: Al­lied Bank (ABL) CEO Tariq Mah­mood re­ceived to­tal re­mu­ner­a­tion of Rs46.3 mil­lion in 2015, up 7 per­cent 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 per­cent last year while its net profit amounted to Rs15.1 bil­lion, up only 0.7 per­cent from a year ago. Yet he re­ceived a bonus of Rs19 mil­lion, which is 41 per­cent of Mah­mood's to­tal an­nual com­pen­sa­tion for 2015.

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