Perks Of Bank CEOs Capped

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Dec. 5, 2010, 5:45 p.m. Published in Magazine Issue: Vol.: 04 No.-12 Dec. 03-2010 (Mangsir 17,2067)
Close on the heels of the budget ordinance that increased the income tax rate to 35 percent on additional income for those earning more than Rs 2.5 million a year, the Nepal Rastra Bank (NRB) has capped the salaries and perks of Chief Executive Officers (CEOs) of banks and financial institutions. Issuing a set of guidelines, it has asked them to limit the fixed annual salary and allowances for chief executives to less than 5 percent of the average staff expenses incurred over the previous three fiscal years or less than 0.025 percent of the company’s total assets at the end of the previous fiscal year, whichever is lower.

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