Pay hikes as per HR firm's advice: UTI

UTI asset management company (AMC) today dismissed reports that its former chief M Damodaran had awarded "undue favour" to some executives, saying it has initiated a new performance-based compensation package in line with the recommendations of an HR consultant.

"The new compensation structure across UTI AMC was implemented based on the recommendations of an HR consultant and as approved by the board," a spokeperson said.

Since the erstwhile UTI's pay package was not in tune with the market, he said the board decided to hire a consultant to suggest measures to "attract, retain and reward" skills.

"Compensation structure was sought to be linked with the functional role of the employee and the value one would add to the business," he said.

The new compensation structure implemented is linked to cost-to-company as followed by other private sector mutual funds that includes the cash equivalent of all the facilities and benefits hitherto available to an executive such as housing, conveyance, medical, leave fare concession, books and periodicals, telephone and retirement benefits.

Dismissing the report that Damodaran had awarded "undue favour" to some executives, the spokesperson said: "The new HR policies of UTI AMC is an outcome of an effort of nearly two years of extensive study, discussion and effort put in by the board of the AMC and the HR consultancy firm."

The process of revamping pay structure was on well before Damodaram demitted office a few weeks ago, he said.