There is good news for Public Sector Bank Employees. Vinod Rai, Chairman of Bank Board Bureau said that Bank Employees will get more attractive pay packages from next financial year (2017-18). This is to retain talent and attract more professionals in Public Sector Banks. The 11th Bipartite Settlement is also due in November 2017, for Government has already reminded the Banks thrice and AIBOC has clarified that they are in advanced stage to submit Charter of Demand for the 11th BPS.
BBB is looking to introduce bonuses, ESOPs and performance linked incentives for PSB employees.
“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,” Rai said.
According to news, SBI and PNB are already looking to introduce the performance linked variable pay structure and may move out from the next wage settlement.
The BBB Chairman told to a newspaper that the improved package would be applicable would be available across all segments, including senior management and middle-rung executives.
The question now arises, will these incentives be part of 11th bipartite settlement? Or the government will discount this while giving a salary increase in next wage revision.
The BBB is also toying with the idea of ensuring a longer tenure for those appointed as executive directors and chief executive officers.
BBB is also looking to give a longer tenure to Bank CEOs/MDs.
“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.
Rai said there can be no denying the fact that there have been instances of lack of probity, transparency and accountability at various levels of government and corporations.
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