MUMBAI: IDFC First Bank Ltd on Monday said its senior management has volunteered to take a 10% cut in fiscal 2021 remuneration, with its chief executive officer (CEO) V Vaidyanathan taking a 30% cut in his compensation including fixed and allowances.
“Such pay cut forms part of the bank’s austerity measures which start at the top," said a bank statement quoting Vaidyanathan.
The bank said it has honoured all offers that were made to new hires before the pandemic including lateral and 550 management trainees. It hapaid 100% of the variable pay to 78.2% of its employees for FY20 despite the arrival of the pandemic.
“Variable pay for FY20 was cut more, progressively, for employees with greater seniority, and bonus for senior management was cut by 65% of the eligible amount," it said, adding that its employees voluntarily contributed one day’s salary totalling ₹3.29 crore to the PM Cares Fund. That apart, the bank also contributed ₹5 crore to the the fund.
“In addition, Vaidyanathan personally contributed ₹47 lakh to covid-19 relief, including ₹25 lacs to the PM Cares Fund and ₹5 lakh for chief ministers covid relief fund," the bank said.
Earlier this month, Kotak Mahindra Bank Ltd had decided to cut salaries by 10% for employees earning over ₹25 lakh per year. The bank had said covid-19 is wreaking havoc on the economy, which in turn will impact a financial services firm. On 29 March, Kotak Mahindra Bank committed ₹25 crore to the PM Cares Fund. Separately, Uday Kotak, managing director (MD) of the bank, committed another ₹25 crore to the fund.