PIA paying highest salary, perks to its chief

[Abbas Ali]

ISLAMABAD: Defence Minister Rao Sikandar Iqbal shared with senators the salary package of PIA chairman Tariq Kirmani, which showed that Kirmani was the most expensive employee of Shaukat Aziz government when PIA was crumbling under Rs 4.1 billion domestic and $ 454 million foreign loans. Defence Minister told the Upper House during the question hour that PIA has also borrowed over $300 million from the Citibank to sustain its operations.

But on the other hand after going through the details of package given to Kirmani, it does not look PIA was running in losses or it owed massive loans to both local and foreign banks.

His basic salary is Rs 322,000 per month and he entitled 26 perks and allowances – including drivers, medical bills, traveling, free utilities, insurance for members of family, two cars and furniture making him one of the most expensive employees of PIA running on borrowed loans.

Kirmani, in addition to salary is getting Rs 155,000 as house rent, 10 percent of basic salary as entertainment allowance, 20 percent of annual basic salary as leave fare assistance, Rs 25 per month as cost of living allowance, Rs 200 as dearness allowance, Rs 200 technical allowance per month, Rs 4,000 servant allowance, two company owned and maintained cars (1600CC, 1300CC).

He has two official drivers and each is given Rs 6000 per month by PIA. There is no limit on the fuel expenses, PIA also pays the bill of domestic electricity, phone, mobile phone, domestic gas, water and conservancy, reimbursement of entrance fee of a club and monthly subscription for two approved clubs.

He is entitled to have four air conditioners from PIA account, refrigerator, deep freezer, cooking range and generator and has the right to get them replaced.

Kirmani is also entitled to performance-based reward equivalent to four basic salaries per annum (Rs 1.3 million). He will also get Rs 25,000 in the name of painting of his house. As far as furnishing of his residence is concerned, he is entitled to fixed amount of Rs 150,000 as residential furnishing; minor repairs and maintenance of residence involving actual expenditures, security cover at all times both while mobile and at residence, medical benefits include full treatment for parents, self, spouse and children. On voluntary retirement before completion of term of service, he will get one month gross salary of Rs 330,000 for each year of service with maximum of 20 months salary. When he attains the age of 60, he will be entitled to 30 days gross salary for each year of service completed. He will also get pension. As he was MD Pakistan State Oil (PSO) before his elevation to PIA chairman, his new contract includes a clause that PSO will transfer all funds accumulated in respect of long term benefits of Tariq Kirmani to PIA, which will continue to maintain and manage these until his appointment at PIA. For the purpose of computation of period in respect of any benefit, his period of employment with PSO shall be added to his employment with PIA. Defence Minister Rao Sikandar also told the House that on the other hand, PIA had taken a loan of Rs 4.1 billion from local banks to help PIA operate in the country.

Source: The News (August 3, 2006)

[umar.islam]

Interesting.

[behramjee]

Emirates, Etihad Airways and Qatar Airways A 330 pilots are paid more than the PIA Chairman hehehe.

And Air Deccan of India-low cost airline pays their first officers on the A 320s RS 160,000 as starting salary !!!

[flyingsystem]

In my opinion its quite normale this kind of salary for CEO of big companies like PIA.

Emirates, Etihad Airways and Qatar Airways A 330 pilots are paid more than the PIA Chairman hehehe.

And Air Deccan of India-low cost airline pays their first officers on the A 320s RS 160,000 as starting salary !!!

Btw, does anybody know whats the basic salary of a PIA first officer?

[umar744]

salam
i met Lufthansa top boss inflight and he said that his wage €60000per month take home after tax but he work only up to 5yrs to 10yrs retired like age over 50yrs old.
regards
umar

[inducedrag]

rs1981 only

[Che]

Emirates, Etihad Airways and Qatar Airways A 330 pilots are paid more than the PIA Chairman hehehe.

And Air Deccan of India-low cost airline pays their first officers on the A 320s RS 160,000 as starting salary !!!

The per capita income in the Gulf states is higher then Pakistan...they can afford to pay their pilots that much...

[flyingsystem]

rs1981 only

??
Are you talking about the pay of a copi in pak?? Im not sure its that...

[Moin]

What else is new? Its not like Kirmani is the first PIA chief to get all these perks. Previous chairmans have all benefitted as much.

[masood]

The Chairman and every employee is paid as per their contract. From what is disclosed above, this is not an exorbitant amount, actually, it is not even high salary. Many employees in Pakistan, banks for example, pay their higher ranking officers much more than this.
Amount of loans has got nothing to do with the salary. If you want good executives, you have to pay them well as well. As far as Kirmani's performance is concerned, he had good reputation when he was brought in, he served in PIA for too short a period to bring about tangible changes in the management, performance and corporate culture.
I think he was removed mainly because of the people with entrenched interests in PIA.

[Maddad]

What maybe of interest is what kind of Performance bonuses he approved for himself.
The salary package maybe competetive for Pakistan . But did he or anyother manager in PIA deserve a Performance bonus!!!!!!!!!!!

[HSK]

salam
i met Lufthansa top boss inflight and he said that his wage 60000per month take home after tax but he work only up to 5yrs to 10yrs retired like age over 50yrs old.
regards
umar

Wa Salam Umar,

Your English is very hard to understand. What are you trying to say? We understand he earns 60,000€ a month but what are you saying about retirement?

[FMC]

But the salary of Chaudhry Ahmed Saeed was PKR 1.00 only!!

[javed]

But how much he gained in 777 kick backs other sham deals. Also, how many contracts for his family business - Servis Industries ? Perhaps Chaudhary sahib was one of the most expensive CEO PIA ever had.

John Chambers also withdrew only $1.00 in salary in year 2001 or 2002. But does that make him a cheaper CEO. This $1.00 slaries are nothing but Tax evasion scheme.

[chevron]

How much salary the new chairman Zafar A Khan drawing. Same as b4 or cut down ?