Former CEO of state-owned entity with Rs355 million perks appointed to new public sector post: report

The former chief executive of a state-owned enterprise (SOE), who received Rs355 million in salary and allowances over 32 months, has been appointed head of another SOE under the same ministry, The News reported, without naming the CEO and the SOE.  

The previous package, approved by the board under legal provisions, included bonuses, leave encashments, car monetization, foreign travel, and other perks.

According to the report, the executive’s current salary is Rs3 million per month. His benefits include two company-maintained vehicles with drivers, a fuel ceiling of 500 litres monthly, business-class travel for domestic and international trips, five-star hotel stays, full family health coverage, group life insurance worth Rs10 million, paid mobile bills, a company laptop, reimbursement for up to two club memberships, and personal security with a bodyguard and two armed guards.

In his previous role, the executive had been appointed in 2022 on a Special Professional Pay Scale III with a fixed salary of Rs500,000. Over 32 months, board-approved bonuses and allowances increased his total take-home package to Rs354 million. These included fixed bonuses of Rs56.3 million, performance bonuses of Rs27.5 million, retrospective pay increases of Rs52 million, severance and gratuity payments of Rs46 million, and foreign visit expenses totaling nearly Rs59 million.

Officials have expressed concern over the lack of action by the ministry and minister responsible for both SOEs, despite earlier media reporting on the previous package. 

Earlier, media reports revealed that excessive perks for the CEO of Pakistan Reinsurance Company had surprised senators. PPP parliamentary leader Sherry Rehman raised the matter during the session, noting that while austerity measures were in place, the CEO had received Rs335 million in perks and privileges in less than three years. Finance Minister Muhammad Aurangzeb assured the house that accountability would be pursued and the funds recovered.

In a related development, the Senate Standing Committee on Finance and Revenue on Thursday moved to strip the boards of the State Bank of Pakistan (SBP) and the Securities and Exchange Commission of Pakistan (SECP) of their authority to set salaries for top executives, following legislators’ concern over the recent steep pay hikes at SECP.

The committee highlighted the SBP, the SECP, and the Pakistan Medical and Dental Council (PMDC) as examples, noting that these institutions can independently determine remuneration packages under their respective laws.

The committee recommended that the authority to approve salary increases should rest solely with the cabinet and prime minister and requested the Finance Division to submit proposed amendments within one month.