SBI, PNB, Bank of Baroda plan performance-linked salary to officials

SBI, PNB, Bank of Baroda plan performance-linked salary to officials

In a first-of-its-kind move in public sector banks (PSBs), State Bank of India (SBI), Punjab National Bank (PNB) and Bank of Baroda (BoB) are considering performance-linked salary structure for their top brass. They are planning to introduce this pay structure for individuals above the general manager grade. However the proposal will require government approval. Sunil Mehta, MD and CEO of PNB told Business Standard that the bank is seriously considering a system of performance-based incentives. He added that there will be a component of variable and fixed pay but the structure will evolve slowly. People in the know said that SBI and BoB are planning to follow suit and working on a compensation framework. This pay structure already exists in private banks. Bank unions are, however, not in favour of the performance-based salary structure. 

Read More at Business Today News date : 27 Jul 2018, Friday

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