Govt in a fix over performance-linked pay for PSE executives

The government want perks of executives of Central Public Sector Enterprises (CPSEs) to be linked to their performance, but is also anxious to see that their earnings do not exceed those of bureaucrats.

The Pay Revision Committee, set up last week, has been asked to examine productivity-linked incentives and performance-related payments.

The government wants the committee, which will be headed by retired Supreme Court Judge M J Rao, to look at performance-linked payments and incentives as a tool to transform CPSEs into professional and successful commercial entities.

However, while talking about linking payments to performance, the government also wants to ensure that this does not lead to a situation where emoluments of officials of CPSEs far exceed those of bureaucrats.

"The committee shall also take into account the report of the sixth Central Pay Commission while finalising its report," the terms of reference of the committee said.