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Sarbajeet K. Sen

New Delhi , Jan. 17

THE country's largest mutual fund, UTI Mutual Fund could soon set fresh pace for the industry. In an attempt to invigorate its staff, the board of directors of UTI MF has cleared a proposal to devise fresh market-related pay packages and a major hike in performance-linked incentive.

"Our board last Friday has given me freedom to offer salary packages that would match the best in the industry. It has also cleared a new performance-linked incentive that would allow me to pay as much as 100 per cent of the basic pay as annual incentive," the Managing Director and Chief Executive Officer, UTI Asset Management Co, Mr U.K. Sinha, told Business Line.

Mr Sinha said the mutual fund had engaged human resources consultants Hewitt Associates to work out the details of the performance-linked incentive (PLI).

He said that the board had also decided to set up a three-member committee to look into promotions. "We want to bring about a transparent mechanism for promotions in our organisation. The panel would consist of one board member and two senior officers," he said.

The newly appointed official said that the initiatives were part of the new management's efforts to revitalise the mutual fund, which had run into difficult times during the recent past. Mr Sinha said there was growing disappointment as pay packages had not been reviewed for around two years while the earlier PLI, which was capped at less than 50 per cent of basic pay, was not being given.

"By giving the staff all assurance of fair play, we are trying to improve the morale. Already there are signs of people getting charged up," Mr Sinha said. UTI MF has about 1,150 employees, of whom 450 are Class-III and IV employees.

Mr Sinha said that the heavy exodus from the organisation over the past couple of years needed to be stemmed. "I hope that with these new initiatives we would not only be able to stop people from leaving but also attract fresh talent since we would now be paying salaries that match the best in the industry," he said.

The erstwhile Unit Trust of India, from which UTI MF was carved out, landed itself in a mess owing to bungled investments forcing Government intervention and subsequent restructuring.

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