Ashraf Mehmood Wathra, Governor, State Bank of Pakistan, has said that better corporate governance is a cornerstone of its policy and is a crucial aspect that affects shareholders, depositors and other stakeholders. He was addressing an orientation session on the guidelines on Remuneration Practices. He said, “These guidelines should be treated as a basic benchmark and the industry can take additional measures by taking into consideration international best practices”.
The interactive orientation session on SBP’s ‘Revised Guidelines on Remuneration Practices’ was organized by the Pakistan Banks’ Association (PBA). Earlier, Mohammad Aftab Manzoor, Chairman, Pakistan Banks’ Association, in his welcome address said that PBA continues to be engaged with SBP on many broad impact banking related matters. He assured increasing and growing engagement with SBP in developing and inculcating best and fair practices and standardization of processes.
Addressing the audience, Tawfiq Hussain, CEO, PBA, said that the banks in the past used different models to reward the employees, but the 2008 global financial crisis compelled the regulators and global standards setting bodies to develop risk based compensation guidelines. He said, SBP has also developed such guidelines, which include a market perspective provided by PBA, and are quite comprehensive. He said there are, however, different readiness levels among the banks which is why PBA took the initiative to host this orientation session for all its members. He further said the objective is to bring all banks up to a base line of understanding.