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Insurance executives’ pay causes political turmoil

Insurance executives’ pay causes political turmoil

Insurance executives’ pay causes political turmoil High executive pay cheques stir frustration in your average employee - but in Iran pay for senior managers at Central Insurance Co has stirred up political outrage.

The Daily Mail has reported that local media outlets in Iran have been recently publishing the pay-slips of top managers at banks and other companies. One of several leaks came from the Government-owned Central Insurance Co (CIC), showing some senior managers were paid up to 870m rials in March, over USD$28,339 when converted. This compares to the average monthly salary in Iran of $650.

The organisation stated the payments were for the last month of the Iranian calendar, so were atypically large since they included arrears, loans and bonuses. Despite this, CIC general manager Mohammad Ebrahim Amin stood down in May stating he regretted the incident had prompted attacks on the government and his company, but denied any wrongdoing.

The example has been used by opponents of President Hassan Rouhani to show living standards in the country have not significantly improved since he took office in 2013. The official unemployment rate at the time he took office was almost 12%.

International sanctions in place against Iran because of its nuclear program were lifted in January, although international businesses have so far remained hesitant to move into the region so economic benefits have been minimal.

YJC news agency quoted a former lawmaker, Hamid Rasaei, calling hypocrisy on the government this week.

“The government says the Treasury is empty of funds...but it has enough money to pay astronomical salaries and huge bonuses,” he said.


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