Coronavirus effect: Within the banking industry, its larger rival Kotak Mahindra Bank has announced pay cuts for all the employees earning above Rs 25 lakh per annum.
Private sector lender Yes Bank on Sunday announced restructuring of salaries for senior leadership team, wherein nearly a third of their yearly compensation will be moved to the “variable pay” category. The move to allocate 30 per cent of the total cost to company as variable pay is applicable to the “leadership team” for FY21, an official statement from the bank said, without detailing who are part of the team.
Generally variable pay to staff is linked to the commercial success of an entity or other specified milestones. The move comes at a time when there are widespread concerns on employment, with a lot of firms even retrenching workers.
Within the banking industry, its larger rival Kotak Mahindra Bank has announced pay cuts for all the employees earning above Rs 25 lakh per annum. “COVID-19 situation has exacerbated the gradually slowing growth momentum in the global economy and the revival of the economy will, to a great extent, depend on the robustness of the financial services sector,” the Yes Bank statement said.
The bank is appreciative of the leadership team for their “unstinted support, demonstrating the highest level of ownership and commitment”, it added. Earlier, the bank had contributed Rs 10 crore to the PM-CARES Fund. Its employees had also voluntarily contributed an amount equal to one day’s salary to the fund to support ongoing relief efforts to combat COVID-19.