RBI to issue new guidelines on salaries of private, foreign bank executives

The new circular also provides for 75% consent by value for a resolution plan to be passed

The Reserve Bank of India (RBI) will soon come up with new guidelines on effectively aligning the pay of senior executives in private, foreign banks with prudent risk taking, said the central bank’s deputy governor, N S Vishwanathan on Tuesday. 

The central bank had floated a discussion paper on this issue in February, touching upon the that at least have the compensation of a chief executive officer (CEO) should be variable. There was no such threshold earlier. The paper also said the stock options should be part of the variable pay, against the practice of keeping it beyond the scope