Despite the entire economic crisis, nine large banks of the country have given Rs257.938 billion to their staff in terms of salaries in the last five years with the major portion of these allowances going to and major portion of the allowances has been given to their top level executives. Fifty-two Managing Directors and CEOs of banks were given Rs2.821 billion in allowances in the said period.
TOTAL ALLOWANCES:
This has been revealed by the data compiled from the annual reports of nine large banks of the country that include Allied Bank, Bank Al-Falah, Faysal Bank, Habib Bank, Muslim Commercial Bank, National Bank, NIB, Standard Chartered Bank, and United Bank.
The data shows that even non-performing loans (NPL), which stand at Rs5.54 billion currently, did not affect the range of huge salaries allowances to the top management of the banks, as the cumulative ratio in the allowances was seen increasing from the year 2008 when NPLs size reached alarmingly heights.
With Rs58.65 billion, NBP stands at number one for giving highest salaries allowances in the said period, while HBL and UBL come in second and third with allowance of Rs56.58 billion and Rs32.03 billion respectively. For other 6 banks, the data show that MCB paid Rs30.77 billion, ABL paid Rs22.31 billion, Bank Al-Falah paid Rs19.93 billion, Standard Chartered paid Rs17.78 billion, NIB paid Rs11.15 billion, and Faysal Bank paid R 8.6 billion in terms of salaries allowances to their staff in the said period.
SALARIES AT THE TOP POSTS:
Looking at the salaries allowance that are given to the top executives of the bankswe find that a total of Rs2.82 billion allowances were given to the MDs and CEOs. The highest salaries allowance were given by Faysal Bank to its six MDs and CEOs in the last five years that is Rs768million, while Standard Chartered Bank stands second with Rs571million salaries allowance given to its six MDs and CEOs in the said period. UBL comes at number three with the salaries allowance of Rs374 million given to its top five employees.
These figures show that the top management of a bank get about 20 per cent of the salaries even though they make about one or two per cent of the employee strength.
The people at the helm of affairs in the other six banks were given salaries the following salaries: Rs285 million by MCB, Rs262 million by NBP, Rs226 million by ABL, Rs163 million by NIB, Rs98 million by Bank Al-Falah, and Rs73 million by HBL. In the last five years eight different people served on the top post at ABL, which is the highest number. When we look at the amount of salaries allowances given to the executives of these banks, it shows that UBL paid Rs11.87 billion to its 3,964 executives, while HBL and MCB paid Rs9.3billion and Rs7.6 billion to their 4,604 and 2,711 executives respectively in the said period. The most expensive MDs or CEOs were of foreign banks, while local banks spent more on their directors and executives. The above mentioned banks spent Rs492.514 billions in the last five years on administrative expenses.