Jun 30, 2016

After widespread outrage that a number of government officials were receiving exorbitant salaries, the heads of four banks in Iran have reportedly been removed.

Quoting an informed source, the Islamic Republic News Agency (IRNA), which is run by President Hassan Rouhani's administration, Minister of Economic Affairs and Finance Ali Tayebnia removed the heads of Bank Mellat, Bank Saderat, Refah Bank and Mehr. According to the source, the head of another bank was also to be removed but the decision has been delayed for “further review.” In Iran, the economics minister is the chairman of the general assembly of government-run banks.

Hours before the report, Ismael Allah Ghani, the managing director of Bank Saderat, wrote a resignation letter to Tayebnia, citing “the environment that has been created in the media about the high salaries of managers.” The IRNA report suggests he was removed from his position.

The topic of high salaries first surfaced when social media accounts began publishing the salaries of senior government executives at Central Insurance of Iran (CII). Some officials were reportedly receiving $20,000-$30,000 a month. One senior Health Ministry official was receiving $58,000 a month. The base public salary of a government employee is about $400 a month in Iran. As a result of the disclosures of the high salaries, Mohammad Ibrahim Rahim, the head of the CII, resigned June 11.

Ever since the revelations of the high wages, Rouhani has been under pressure to investigate and punish government employees receiving excessive salaries. According to the IRNA report, after Supreme Leader Ayatollah Ali Khamenei met with members of Rouhani’s Cabinet and called for swift action against those receiving high wages, instructions were given by the president to remove the offending managers of the banks. Previously, on June 11, Rouhani had tasked Vice President Eshag Jahangiri to investigate the claims of high salaries.