Bank employees’ pay to be more attractive from April 1 : Vinod Rai

As part of the efforts to attract more professionals into the PSB space, the Banks Board Bureau will revamp the compensation package of employees and introduce bonuses, employee stock options (ESOPs) and performance-linked incentives from April 1 this year, its Chairman Vinod Rai said.

The BBB is also toying with the idea of ensuring a longer tenure for those appointed as executive directors and chief executive officers.

“If we provide, say, a six-year tenure, there is greater degree of compulsion of accountability that these officials will be subject to,” Rai said while delivering the 97th Assocham Foundation Day lecture in the capital on “Good governance is essential for sustained economic development.”

Rai said that the compensation package of the PSBs needed to be improved in order to attract more professionals. “We may not be able to do much about the fixed component, but we can change the variable component.

“From the next financial year, we should be able to introduce bonuses, ESOPs and performance-linked packages. There would be both monetary and non-monetary incentives,” he added.