RBI pitches for 'reasonable' bank executives pay
Reserve Bank of India has called for reasonable compensation package for top executives including chief executives and directors of banks operating in the country.
By PTI |
NEW DELHI: The Reserve Bank of India has called for reasonable compensation package for top executives including chief executives and directors of banks operating in the country.
The apex bank made the observation in response to the recommendation made by the G-20 'Working Group on Enhancing Sound Regulation and Strengthening Transparency'.
The central bank's observation comes at a time when executive compensation has come under the scanner in the wake of the global financial crunch.
"While devising the total remuneration package (including all perquisites and bonus) of CEOs and whole-time directors, Boards of private banks are required to ensure that the total package is reasonable in the light of industry norms including size of the business in India," the RBI said in its annual monetary policy 2009-10.
The G-20 working group had recommended that prudential supervisors should enhance their oversight of compensation schemes by taking the design of remuneration system into account when assessing risk management practices.
The RBI has asserted that it would recommend the implementation of the sound procedures/principles developed by the Financial Stability Board (FSB) for financial institutions regarding the pay packages.
The apex bank made the observation in response to the recommendation made by the G-20 'Working Group on Enhancing Sound Regulation and Strengthening Transparency'.
The central bank's observation comes at a time when executive compensation has come under the scanner in the wake of the global financial crunch.
"While devising the total remuneration package (including all perquisites and bonus) of CEOs and whole-time directors, Boards of private banks are required to ensure that the total package is reasonable in the light of industry norms including size of the business in India," the RBI said in its annual monetary policy 2009-10.
The G-20 working group had recommended that prudential supervisors should enhance their oversight of compensation schemes by taking the design of remuneration system into account when assessing risk management practices.
The RBI has asserted that it would recommend the implementation of the sound procedures/principles developed by the Financial Stability Board (FSB) for financial institutions regarding the pay packages.
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