The Banks Board Bureau is working on an attractive compensation package including bonus, employee stock ownership plans (ESOPs) and other non-monetary perks at all management levels, chairman Vinod Rai said on Thursday.
This is part of steps to ensure that best of professionals are recruited for public sector banks, Mr Rai said at an industry body event.
Mr Rai said that he is hopeful that the new compensation package for public sector bank employees could be introduced by next financial year.
The Banks Board Bureau is looking into particularly the variable part of the compensation structure, he added.
"In some ways the compensation package of these public sector institutions needs to be improved, maybe we are not able to do much with fixed part of compensation package but variable part we certainly are looking into it and we are hopeful that by next financial year we will be able to introduce a far more attractive package," Mr Rai said.
He also said that the Banks Board Bureau is in the process of filling up vacancies at top management levels in banks. "We are looking for the right people, and we are trying to ensure that we choose the best and not the second-best."
"An attempt will be made to introduce accountability in the system, to ensure that you appoint a whole time director or a CEO (chief executive officer) at an age where he has got a minimum of six years more to go in the institution so that he can be held accountable for the decision," added Mr Rai.
Mr Rai further said, "We are in the business of trying to collate people who are from different walks of life and who will be willing to join boards of PSBs and be able to provide that kind of expertise which these banks have not had in the past and the effort is to ensure that it is these boards which run the banks."
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