SBI, PNB, BoB may introduce performance-linked pay for senior management

The banks would need approval from the government for such a move

State Bank of India (SBI), Punjab National Bank (PNB) and Bank of Baroda (BoB) are planning to introduce performance-linked salary structure for the senior management — a first-of-its-kind move among public sector banks (PSBs).

PNB Managing Director and Chief Executive Officer Sunil Mehta told Business Standard: “The bank is seriously thinking of introducing a system of performance-based incentives for officers above Scale III (which includes divisional manager, assistant general manager, deputy general manager and general manager). There will be a component of fixed and variable pay. But it will evolve slowly.”

SBI and BoB may also follow a similar model