YES Bank has restructured the salaries of its senior leadership team for the current financial year by moving up to 30 per cent of their total cost to company (CTC) to variable pay category.
The bank said the leadership team had taken a voluntary decision for restructuring of their compensation package. Earlier, the compensation on CTC basis was fixed at 100 per cent, YES Bank Managing Director and Chief Executive Prashant Kumar said.
About 300 employees would come under the ambit of voluntary decision.
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At YES Bank, the bonus-performance linked compensation was outside of CTC. It was based on
management’s discretion.
The Reserve Bank of India, in November 2019, had issued guidelines for compensation to chief executives, material risk takers, and control function staff. The variable pay could be in the form of share-linked instruments or a mix of cash and share-linked instruments. The entire variable pay can be in cash only in cases where rules and regulations do not permit share-linked instruments.
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YES Bank’s payments to and provisions for employees stood at Rs 2,599.87 crore in FY20, higher than Rs 2,469.77 crore in FY19. For FY20, it posted a whopping loss of Rs 16,418.02 crore on standalone basis, as against a net profit of Rs 1,720.27 crore in the previous fiscal year.
