The hike, however, will not include the basic salary and other allowances, which will be decided by the Pay Commission. Other compensations including compensation for executive programmes, consultancy services are also likely to be increased. According to Apte, there could be a hike of 30% to 40% in compensation for executive programmes as well. For consultancy services the institute will follow IIM, Ahmedabad model, where the faculty retains fees up to Rs 6,00,000, and the additional sum is divided between the faculty and the institute in 60:40 ratio.
According to Apte, the move will result in an additional outgo of nearly Rs 2.5 crore every year. He said under the current compensation model at IIM-B, it was very difficult to get quality teaching staff with corporate and private business schools offering more than double the compensation paid at IIM-B.
Issues including infrastructure, flexibility related to job and teaching loads are also major concerns relating to recruitment of quality faculty.
According to Apte, it is a common phenomenon across all IIMs, excluding the relatively new ones, where infrastructure like healthcare and other facilities are comparatively better. Apte said the institute had submitted a proposal to the government to increase its student intake by 15% next year.
IIM-B has asked for Rs 130 crore government grant to improve its infrastructure facilities, which include land acquisitions, construction of buildings.