Can a line be drawn between ‘highly paid’ and ‘overpaid’ when it comes to executive compensation?
In the case of top bankers, who are known worldwide for their insanely inflated salaries, how exactly should the monetary value of a CEO be determined?
In an ideal marketplace, the law of supply and demand would seal the remuneration debate once and for all. But according to many, things are so skewed at the top of the banking industry that the issue of executive remuneration cannot be left to the market forces alone.
To prove his point, he cites the example of a foreign bank’s CEO whose take-home salary is more than
According to banks’ annual financial reports for 2012 – the latest year for which detailed data is available – the CEO of
The annual remuneration of the
The remuneration of
The CEO of
The highest jump in percentage terms was witnessed in the remuneration of the
“Banks have been enhancing their profitability only to the benefit of their majority shareholders,” Siddiqui said.
However, citing plain statistics show only one side of the picture, according to professionals serving at the top of Pakistan’s banking industry.
“It’s ridiculous to question why somebody is getting a high salary,” a bank president told
Noting that only 38 people out of more than 158,000 professionals that the country’s banking sector employed in 2012 held the title of CEO/president, he said shareholders hold executives accountable and can fire them for bad performance.
“We get high salaries because we deserve them. If you pay peanuts, you get monkeys,” he said.
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