Nepal Rastra Bank Issues New Guidelines on CEO Salary and Benefits
Summary
Nepal Rastra Bank has issued new guidelines standardizing CEO salaries and benefits for banks and financial institutions, including limits on allowances and performance-based pay.
Key Points
- Nepal Rastra Bank issued guidelines on CEO salary, allowances, and benefits for banks and financial institutions.
- A committee led by an independent director must recommend CEO remuneration based on qualifications and financial performance.
- Salary limits vary by institution type, e.g., commercial banks max 2% of average employee expenses or 0.015% of total assets.
- Performance-based remuneration can be up to 20% of fixed salary, depending on key performance indicators.
