Money & Banking

Coming soon: Far more attractive compensation package for public sector bank executives

Our Bureau New Delhi | Updated on January 12, 2018 Published on January 05, 2017

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The Banks Board Bureau (BBB) is in the process of putting together "far more attractive" compensation package to enable more professionals enter the public sector bank space, its Chairman, Vinod Rai, has said.

The improvement will be on the variable part and not on the fixed side of the compensation package, Rai said in his lecture on 'good governance' at Assocham's 97th Foundation Day in the capital on Thursday.

This change -- more on performance-linked incentives -- is likely to come into effect from next financial year.

Asked later as to whether the improved compensation package would be applicable only for senior management, Rai told BusinessLine that the improved compensation package would be available across all segments -- senior management, middle rung and also lower cadre employees.

In his lecture, Rai said the need for greater probity, transparency and accountability in governance has gained added significance going by India's experience in the last two decades since the opening of the economy from 1990s.

"While we have performed well in almost all the sectors in the economy since liberalisation and we could withstand the global economic slowdown, we did fail to achieve the true potential of the liberalisation reforms," Rai added.

Rai said there can be no denying of the fact that there have been instances of lack of probity, transparency and accountability at various levels of government and corporations.

As a result, the growth tapered off before fully exploiting the sizeable domestic market; the profits of individual companies dipped; and the investors' interest declined. The financial position of the Government remained under pressure with not enough funds to spend on various welfare schemes.

"The gains reaped earlier may also get wiped out, if the Government has to intervene financially to bail out individual companies or a sector at large," he said.

Srivats.kr@thehindu.co.in

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Published on January 05, 2017
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