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How much does the highest paid banking professional in Pakistan take home every year?
The figure comes out to Rs 34 crores 86 lakhs and 60 thousand. That is a salary of nearly Rs 3 crores a month. In that money you could reasonably (or actually very unreasonably) buy roughly 49 PTA approved iPhone 14 Pro Max 128 GBs in a month. Or you could instead buy a 1 kanal plot in DHA Phase 6 Lahore every month, or two Toyota Fortuners a month.
Yet the position of top-dog in Pakistan’s banking industry is a lonely one. The banking mountain is made out of 31 banks — five of which are public sector banks, 22 are private commercial banks, and four are foreign banks. Heading these banks are 31 CEOS or Presidents. All men. All professional bankers. All ridiculously well paid. And all constantly trying to edge each other out.
What some outside the industry may not know is that banking is one of those professions where being a ‘company-man’ is not a point of professional pride nor a good career move. After bankers hit a certain level in one organisation, they regularly shift around, bouncing from one financial institution to another. In fact, most bankers aspire to head not one bank that they’ve worked at their entire lives but to have been part of multiple big banks and hopefully reach the top-slot in at least a couple.
But while the big-boys of banking splash around in the big-bucks that they are making, there are two big questions? How much money do all of these bank bosses make, and do they deliver the bang for the back that their employers spend on them? To determine this, Profit has ranked banking CEOs and Presidents in order of how much money they make but with a caveat — what is the return on investment that these high salaries give to the bank? That is why along with every Bank CEO’s salary, we have calculated the returns they generate – namely the return on assets and the return on average equity.
Number 1 on our list is Shazad Dada of UBL. At the helm for the past two years, he took over from legendary banker Sima Kamil. His salary comes out to Rs 340.86 million a year. Despite this, he ranks No7 on the ROA scale and No10 on ROAE.
Number 2 on our list is Irfan Siddiqui of Meezan Bank. As the second highest paid bank CEO in Pakistan, he makes Rs 306.18 million a year. Founding President of the bank, he is one of the pillars of Meezan’s success and ranks No1 on ROA and No2 on ROAE.
Number 3 , You would think the CEO of HBL would be the highest paid, but Muhammad Aurengzeb is actually third with a salary of Rs 265.66 million. A seasoned professional, Aurangzeb has proven an able leader in one of the toughest jobs in the industry. He ranks No13 on ROA and No14 on ROAE.
Number 4, Coming in at fourth is Shoaib Mumtaz with a yearly salary of Rs233.52 million. A career banker, he has spent three decades at MCB in various senior positions. He finally ascended to CEO in Jan this year, and holds an ROA rank of No3 and an ROAE rank of No8.
Number 5, To cap off our top five is veteran banker Atif Bajwa, who makes Rs 187.26 million as the boss at Alfalah. He is the first in our list that earns less than Rs 200 million. In his second stint as CEO of Alfalah, he holds an ROA rank of 12th and an ROAE rank of 9th.
There are overall 31 banking CEOs and Presidents in Pakistan. While the highest paid gets Rs 340.86 million, the lowest earns Rs 33.61 million - less than 10% of what Shahzad Dada makes. There is no one way of measuring which salary is justified.
The impact of a particular CEO can’t quite be measured until after their stint ends. Some CEOs come in to conduct a rescue mission while others take over well-oiled machines. That means even ROA and ROAE aren’t accurate indicators of value for money.
For the rest of the list of highest paid CEOs, details on our methodology, and analysis of the numbers, read on in this week’s cover story by @AribaShahid at:
https://profit.pakistantoday.com.pk...banking-make-big-bucks-but-are-they-worth-it/
{Editor’s note: There are no women banking CEOs on this list. Unfortunately, there is a conspicuous lack of female bankers in top roles. Currently, UBL is the bank paying their CEO the most. The current CEO’s predecessor was a woman, Sima Kamil, who was not paid nearly as much as the bank is paying their CEO now. In fact, when she joined UBL Sima was paid Rs137 million per year, which was significantly reduced to Rs 94 million in 2019. Banks talk a big game about financial inclusion, a big part of which is bringing women into the fold of banking. However, it is disappointing to see that the barriers to entry for female executives continue to be high and mighty.}
The figure comes out to Rs 34 crores 86 lakhs and 60 thousand. That is a salary of nearly Rs 3 crores a month. In that money you could reasonably (or actually very unreasonably) buy roughly 49 PTA approved iPhone 14 Pro Max 128 GBs in a month. Or you could instead buy a 1 kanal plot in DHA Phase 6 Lahore every month, or two Toyota Fortuners a month.
Yet the position of top-dog in Pakistan’s banking industry is a lonely one. The banking mountain is made out of 31 banks — five of which are public sector banks, 22 are private commercial banks, and four are foreign banks. Heading these banks are 31 CEOS or Presidents. All men. All professional bankers. All ridiculously well paid. And all constantly trying to edge each other out.
What some outside the industry may not know is that banking is one of those professions where being a ‘company-man’ is not a point of professional pride nor a good career move. After bankers hit a certain level in one organisation, they regularly shift around, bouncing from one financial institution to another. In fact, most bankers aspire to head not one bank that they’ve worked at their entire lives but to have been part of multiple big banks and hopefully reach the top-slot in at least a couple.
But while the big-boys of banking splash around in the big-bucks that they are making, there are two big questions? How much money do all of these bank bosses make, and do they deliver the bang for the back that their employers spend on them? To determine this, Profit has ranked banking CEOs and Presidents in order of how much money they make but with a caveat — what is the return on investment that these high salaries give to the bank? That is why along with every Bank CEO’s salary, we have calculated the returns they generate – namely the return on assets and the return on average equity.
Number 1 on our list is Shazad Dada of UBL. At the helm for the past two years, he took over from legendary banker Sima Kamil. His salary comes out to Rs 340.86 million a year. Despite this, he ranks No7 on the ROA scale and No10 on ROAE.
Number 2 on our list is Irfan Siddiqui of Meezan Bank. As the second highest paid bank CEO in Pakistan, he makes Rs 306.18 million a year. Founding President of the bank, he is one of the pillars of Meezan’s success and ranks No1 on ROA and No2 on ROAE.
Number 3 , You would think the CEO of HBL would be the highest paid, but Muhammad Aurengzeb is actually third with a salary of Rs 265.66 million. A seasoned professional, Aurangzeb has proven an able leader in one of the toughest jobs in the industry. He ranks No13 on ROA and No14 on ROAE.
Number 4, Coming in at fourth is Shoaib Mumtaz with a yearly salary of Rs233.52 million. A career banker, he has spent three decades at MCB in various senior positions. He finally ascended to CEO in Jan this year, and holds an ROA rank of No3 and an ROAE rank of No8.
Number 5, To cap off our top five is veteran banker Atif Bajwa, who makes Rs 187.26 million as the boss at Alfalah. He is the first in our list that earns less than Rs 200 million. In his second stint as CEO of Alfalah, he holds an ROA rank of 12th and an ROAE rank of 9th.
There are overall 31 banking CEOs and Presidents in Pakistan. While the highest paid gets Rs 340.86 million, the lowest earns Rs 33.61 million - less than 10% of what Shahzad Dada makes. There is no one way of measuring which salary is justified.
The impact of a particular CEO can’t quite be measured until after their stint ends. Some CEOs come in to conduct a rescue mission while others take over well-oiled machines. That means even ROA and ROAE aren’t accurate indicators of value for money.
For the rest of the list of highest paid CEOs, details on our methodology, and analysis of the numbers, read on in this week’s cover story by @AribaShahid at:
https://profit.pakistantoday.com.pk...banking-make-big-bucks-but-are-they-worth-it/
{Editor’s note: There are no women banking CEOs on this list. Unfortunately, there is a conspicuous lack of female bankers in top roles. Currently, UBL is the bank paying their CEO the most. The current CEO’s predecessor was a woman, Sima Kamil, who was not paid nearly as much as the bank is paying their CEO now. In fact, when she joined UBL Sima was paid Rs137 million per year, which was significantly reduced to Rs 94 million in 2019. Banks talk a big game about financial inclusion, a big part of which is bringing women into the fold of banking. However, it is disappointing to see that the barriers to entry for female executives continue to be high and mighty.}
