Nepal Rastra Bank (The Central Bank of Nepal) recently made public its guidelines to limit CEO pay. According to My Republica (HERE) "NRB has asked the BFIs 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."
In response to this news Mr. Prakash Shrestha and Ms. Kalpana Khanal have written an interesting Op-Ed in The Kathmandu Post (CLICK HERE) titled "Through the Roof." They point out that "financial institutions are not like private industries," but rather "public institutions by nature." They argue that "the ever-growing perks and salaries of CEOs tend to bring anomalies in the financial sector."
The definition of insanity is doing the same thing over and over and expecting a different result, so good job Rastra Bank for trying something a little unexpected.
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