| Performance-linked pay for PSU bank CEOs, staff |
| Tamal Bandyopadhyay / Mumbai February 16, 2006 |
| Bank employees to get incentives based on performance in five key areas. Heads of 29 public sector banks are set to get a performance-linked annual incentive package. Besides, all of them will get a lumpsum ex-gratia payment on retirement, depending on the number of years they put in as directors on bank boards. Down the line, close to 800,000 employees in the public sector banking industry, too, will get incentives, based on their performance in five key areas. The finance ministry is expected to announce the package before the Budget. Once in place for the state-run banks, performance-linked packages were likely to be used as a benchmark for other PSUs, sources familiar with the development said. According to sources, the five parameters based on which the performance incentive for employees will be worked out include credit growth, deposit mobilisation, quality of assets and recovery of non-performing assets. The maximum amount a bank can pay to employees through this route will be capped at 1 per cent of a bank |
