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Perform or perish: The CEO’s pay cheque is undergoing a 360-degree evaluation

Company boards are adding various performance-linked criteria on top bosses’ pay, as cost and profit pressures continue. Clawback provisions are also finding favour with pay-setters.
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8 Jan 2020 5 Mins Read 0 comment
Concept: Muhabit ul haq Getty Images
Concept: Muhabit ul haq
In November 2019, crisis-ridden non-banking finance company Altico Capital faced the Reserve Bank of India’s ire after it decided to pay its CEO INR10 crore under a six-month employment contract. This was despite the company trying to hammer out a resolution plan ever since it defaulted on interest payments in September. The wide pay gap between
is that the variable pay must be capped at a maximum of 300% of fixed pay. Apart from financial performance, companies are also linking ESG issues to CEO pay. “ESG is of paramount importance to attract global investment and hence it has an important link to CEO compensation,” says Haribhakti . ( Graphics by Abdul Shafiq)
In November 2019, crisis-ridden non-banking finance company Altico Capital faced the Reserve Bank of India’s ire after it decided to pay its CEO INR10 crore under a six-month employment contract. This was despite the company trying to hammer out a resolution plan ever since it defaulted on interest payments in September. The wide pay gap between is that the variable pay must be capped at a maximum of 300% of fixed pay. Apart from financial performance, companies are also linking ESG issues to CEO pay. “ESG is of paramount importance to attract global investment and hence it has an important link to CEO compensation,” says Haribhakti . ( Graphics by Abdul Shafiq)

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