Executive salary is a complicated and debatable subject. The CEOs sky-high pay levels have induced a debate about the nature of the pay‐setting process and the outcomes it produces. Some contend that vast official pay bundles are the aftereffect of top management setting their own compensation and separating rents from firms. The purpose of the study is to observe the influence of executive salary on profits in banking sector of Pakistan so that the investment pays off and the industry benefits.In this research, for empirical analysis a data series of 8 Pakistan Stock Exchange(PSX)listed banks is being used. Data is starting from 2008 to 2015. As mentioned secondary data was used in the research. We have collected the available data of 8 banks from different website like PSX or Banks official websites. In terms of analysing the data, study uses three techniques: (i) Pooled OLS, (ii) Fixed Effect & (ii) Random Effect. The results of this study indicate that the top management salaries have a positive and significant effect on organizational profit. The results are in line with the previous studies of Essien (2002),Nwachukwu (2000) &Atchison (2003). Supervisor:- Dr. Nadeem Ahmed Khan