National Bank of Pakistan (NBP) shareholders approved the salary of newly appointed President and rejected the performance bonus of outgoing president. Despite the objections of minority shareholders, a private member of Board of Director (BOD) was elected and non executive director meeting fee was increased.
A NBP Extra Ordinary General Meeting (EOGM) was held in a local hotel on May, 15, 2017. Agenda of EOGM was to elect one Director from the Private Shareholders, compensation package of new President of the Bank, Performance Bonus of Syed Iqbal Ashraf, Ex-President for the years 2015 & 2016 and enhancement in meeting fee of Non-Executive Directors.
EOGM considered the salary of new bank president Saeed Ahmed. Board of Directors suggested Rs 40 million yearly salary excluding perk and allowances. No shareholder objected to the salary of President and it was approved without any change.
The BOD suggested increasing meeting fee for non-executive director from 90,000 to 150,000. Despite protests, the fee was increased.
Performance bonus of Syed Iqbal Ashraf, Ex-President was rejected by EOGM due to SBP voting against it. BOD demanded a performance bonus for outgoing president Syed Iqbal Ashraf for the years 2015 and 2016. Once again SBP intervened and as majority shareholders, rejected the move. This is the second time that SBP has rejected the bonus of Syed Iqbal Ashraf.
Minority share holders protested against the interference of government in the election of Board of Directors. Protesters said that the Ministry of Finance was interfering in the election of minority shere holders.
During the meeting, a minority shareholder Hanif Memon claimed that the Ministry of Finance wrote a letter to Governor State Bank of Pakistan (SBP) and asked to elect Fareed Malik. ProPakistani obtained this letter.
“This letter is intervention and rigging in election process. Private Shareholder’s seat must be given to minority shareholder.” Hanif Memon told ProPakistani.
Despite the protest Fareed Malik secured 58 percent votes and was elected as a member of BOD.