CEO salaries are always a hot topic, especially in big companies like Nabil Bank, one of the largest banks in Nepal. Ever wondered how much Nabil Bank's CEO makes? Or how this salary compares to the performance of the company?

In this article, we’ll break down the CEO salary of Gyanendra Prasad Dhungana, the top executive at Nabil Bank, using the most recent data from the bank’s 2022-23 annual report. We’ll also explore how his compensation aligns with the bank’s revenue, profit, and the median employee salary.

Snapshot of Nabil Bank's Financial Performance (FY 2079/80)

Before diving into the salary details, here’s a quick look at Nabil Bank’s financial numbers for 2022-23:

• Market Capitalization: NPR 3.08 trillion
• Revenue: NPR 2.15 trillion
• Net Profit: NPR 6.4 billion
• Number of Employees: 2,480

These numbers show that Nabil Bank is a key player in the Nepalese banking sector, achieving impressive growth despite market challenges.

Meet Nabil Bank’s CEO: Gyanendra Prasad Dhungana

Gyanendra Prasad Dhungana has been the CEO of Nabil Bank for several years. With a Chartered Accountant (CA) degree from the Institute of Chartered Accountants of India, and a Master’s in Financial Analysis from the University of New South Wales, he is one of the most qualified leaders in Nepal’s banking industry.

He’s no stranger to leadership. Before Nabil Bank, he was the CEO of Nepal Bangladesh Bank, and he has held positions like Chairman of Nepal Bankers’ Association and Director at Nepal Rastra Bank.

Breaking Down the CEO Salary at Nabil Bank

Here’s a detailed breakdown of Mr. Dhungana’s compensation for the financial year 2079/80 (2022-23) i.e. financial year ending on 31 Ashad 2080:

• Base Salary: NPR 7,920,000
• Bonus and Other Benefits: NPR 8,000,633
• Stock Options: NPR 0
• Non-Cash Compensation: NPR 0
• Total Compensation: NPR 15,920,633

How Does Nabil Bank’s CEO Salary Compare to the Bank’s Performance?

Let’s take a closer look at how Mr. Dhungana's salary relates to Nabil Bank’s financial performance.

1. CEO Salary as a Percentage of Profit

• Mr. Dhungana’s total pay represents 0.25% of Nabil Bank’s NPR 6.4 billion profit. This shows that his salary, while significant, is a small fraction of the bank’s earnings.

2. CEO Salary as a Percentage of Revenue

• His total compensation makes up 0.001% of the bank’s NPR 2.15 trillion revenue. Even though the salary looks substantial in absolute terms, it’s a tiny percentage of the bank’s huge revenue.

3. CEO Salary vs. Median Employee Salary

• The CEO earns 8.76 times more than the median employee salary of NPR 1,818,216.93. This pay gap may seem large but is fairly common in major companies across various sectors, not just in Nepal.

CEO Performance: Why Gyanendra Prasad Dhungana’s Leadership Matters

Despite a 43.83% drop in his total compensation from the previous year, Mr. Dhungana’s leadership drove Nabil Bank to achieve a 22.67% growth in net profit.

His achievements during this period highlight his ability to steer the bank through uncertain times, delivering substantial growth in profit even with external challenges. This demonstrates the significant role he plays in the bank’s overall success.

Why CEO Salary Matters for Nabil Bank and Beyond

The compensation of a CEO is often linked to company performance, and Nabil Bank is no exception. Mr. Dhungana’s salary reflects the bank’s financial health and his crucial role in driving that success. However, his pay relative to the bank’s profit and revenue also suggests that Nabil Bank has struck a balance between rewarding top leadership and ensuring overall corporate growth.

Conclusion: What We Can Learn from Nabil Bank’s CEO Compensation

When it comes to CEO salaries in Nepal, Mr. Dhungana’s compensation package at Nabil Bank offers valuable insights. While his earnings are substantial, they represent a small fraction of the bank’s massive revenue and profits. More importantly, his leadership has driven significant profit growth, showing that executive compensation can be tied closely to performance.

As CEO pay transparency becomes a growing trend, it’s important to keep an eye on how executive salaries in Nepal match up with their impact on company performance, employee satisfaction, and shareholder value.

To explore more about the bank’s performance and leadership, you can access the full Nabil Bank Annual Report for FY 2079/80 (2022-23).

And since you are here, you may also want to take part in our salary survey where more than 300 professionals have shared their salary details anonymously. Once you contribute your salary, you will be able to access the database too. You will be surprised by the results of how much Nepali professionals are getting paid across industries and roles.