Nepal Rastra Bank Caps CEO Salaries at 2% of Average Staff Costs

The Nepal Rastra Bank has implemented a new regulation limiting the salaries of bank CEOs. Their remuneration will now be capped at a maximum of 2% of the average employee expenditure over the last three fiscal years. This measure aims to address potential disparities in executive compensation within the banking sector. The central bank's decision reflects a move towards greater financial prudence and equitable salary structures. The regulation is effective immediately for all commercial banks operating under its purview.

This regulatory change by Nepal's central bank aims to control executive compensation in the banking sector, potentially impacting financial institutions' internal policies.