SECP’s inquiry reveals illegal appointment and excessive pay rise of Pakistan Reinsurance Company’s ex-CEO, holding the board responsible for multiple law breaches and urging legal action.
ISLAMABAD: (UrduPoint/UrduPoint / Pakistan Point News-Oct,15, 2025) The Securities and Exchange Commission of Pakistan (SECP) has completed an inquiry into the controversial appointment and hefty salary increase of Pakistan Reinsurance Company Limited’s (PRCL) former Chief Executive Officer, finding the company’s board guilty of multiple legal violations.
Following the investigation, SECP has decided to take action against the board, while referring the matter of the CEO’s excessive compensation to the Ministry of Commerce for proceedings under the State-Owned Enterprises (SOE) Act.
In a letter sent to the ministry on October 14, 2025, SECP noted that the individual was appointed as acting CEO without the approval of either the Federal government or the Commission. The report further stated that the former CEO lacked the required experience at the time of appointment, yet the PRCL board approved an additional pay package far exceeding the government-approved Special Professional Pay Scale (SPPS-III).
According to SECP’s findings, the board violated several legal provisions, including the Companies Act 2017, Insurance Ordinance 2000, Insurance Companies (Sound and Prudent Management) Regulations 2012, and Public Sector Companies (Corporate Governance) Rules 2013. The Commission has recommended legal proceedings against the responsible officers and PRCL.
The report also highlighted that despite the enforcement of the SOE Act 2023, the PRCL board, in its 178th meeting on October 2, 2023, approved another pay increase for the CEO with retrospective effect from February 2023 — a move explicitly prohibited under Section 36(3) of the SECP Act. SECP clarified that since the SOE Act falls outside its jurisdiction, the case has been forwarded to the Ministry of Commerce for “appropriate action.”
The inquiry began after The news reported that the CEO received Rs 350.5 million in salaries and perks over just 32 months — all with board approval. While the Commerce Ministry initially took no action, the Prime Minister’s Office later directed SECP to investigate.
SECP’s final report confirms the violations and places responsibility on the Ministry of Commerce to act under the SOE Act. A copy of the report has also been shared with the Ministry of Finance.
According to The News, the ex-CEO, appointed in 2022 under the SPPS-III scale with a base salary of Rs 500,000 per month, received a total of Rs 354 million in benefits, including Rs 56.3 million as fixed bonus, Rs 27.5 million as performance bonus, Rs 52 million in retrospective salary increase, Rs 46 million in gratuity and severance payments, and millions more in car monetization, encashed leave, foreign travel expenses, and directors’ fees — despite having resigned to join another public sector entity.
The case is now being viewed as a major example of misuse of public resources within a state-owned enterprise.
