ISLAMABAD : The Board of NESPAK (National Engineering Services Pakistan ) has fixed Rs 1 million salary of newly appointed Managing Director, in addition to six annual bonuses of six million and other perks and privileges.
According to information, the Board was apprised that Zargham Eshaq Khan was appointed as Managing Director by the Board of Director in its meeting held on October 03, 2023. However, since his appointment notification does not specify his pay, allowances and other benefits, therefore, his salary package with effe.t from the date he took charge as Managing Director NESPAK was worked by the HR Division and was deliberated in the 28th meeting of the HR Committee on January 02, 2024.
The Board was further apprised that HR Division had proposed a salary of Rs.1,215,457 / (Rupees One million two hundred fifteen thousand four hundred and fifty-seven) as per Service Rules for CEOs and on the same basis as that of the previous Managing Director, and being a regular employee, also proposed to provide him with following entitlements; (i) pay allowances and other benefits (except the house rent, telephone, and utility entitlements ) receivable by a Vice President / Executive Vice president and as revised from time to title;(ii) the house rent allowance is fixed at Rs. 250,000/- per month. However, for the duration that the Managing Director stays in NESPAK provided accommodation ; house rent allowance shall not be paid ;(iii) Managing Director allowance is fixed at Rs. 400,000 /- per month;(iv) leave as per NESPAK Rules;(v) medical as per NESPAK Rules ;(vi) Leave Fare Allowance (LFA), Contributory provident (CP) Fund, Gratuity Fund, and Employees Welfare Fund as per NESPAK Rules.
Pir Saad Ahsanuudin, the Convener of the HR Committee informed the Board that after much deliberation , the HR Committee recommended that being a contact position the MD should be given a lump sum salary, which was then decided unanimously for Rs. 1 million along with an annual performance bonus of up to six salaries i.e. Rs. 6 million subject to an annual appraisal which would be commensurate with achieving the annual targets of the Business plan. He added, that during the appointment of the MD NESPAK, the Board deliberated that a government -based applicant should have to resign from his regular position and then be appointed on the contractual terms , which was not decided by this time, however for future appointments, this factor may be considered by the Board to bring more transparency in approving the terms and conditions of the MD position.
The Board was informed that the previous two of the MDs have claimed Orc purchase of company vehicles which they were allowed to use during their tenure and for those vehicles, the entitlement was not defined in NFSPAK,s Service rules for its CEOs. Therefore, to prevent this from happening again, the HR Committee has recommended a terminal benefit of the sale of a company car of 1300cc to the MD NFSPAK as is also allowed in Company rules.
Shakeel Ahmad, the Chairman (P&D)-Sindh was of the view that the performance should base on quantified criteria with defined KPIs, and may not be linked with the percentages of revenue generated from foreign business so that in case of any exchange gain/loss, the MD do not suffer in terms of bonus. Upon that, Pir Saad Ahsanuudin informed that the Board had approved that Business plan should aim towards generating at least 50% revenue from outside Pakistan within the next 5 years, by this, the bonus factor was recommended to link with achieving the targets of the Business plan.
Asif Haider Mirza suggested that the recovery of receivables should also be included in the criteria the MD performance appraisal.
After deliberations, the Board unanimously approved the recommendation of the HR Committee and directed that the bonus shall be decided based on tie annual performance appraisal of the MD, for that the Audit committee’s input and the factor of exchange gain/loss on foreign revenues/profitability should also be taken into consideration.
The Board resolved as per the recommendations of the HR Committee Zargham Eshaq Khan, the MD NESPAK shall be given a lumpsum monthly salary around Rs 1 million along with an annual performance Bonus of up to six salaries Rs 6 million subject to the annual performance appraisal of achieving the annual business targets as defined in the Business Plan.
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