IDFC First Bank announced on Monday that its senior management will take 10 per cent cut in compensation in the current financial year 2020-21.
V. Vaidyanathan, Managing Director and Chief Executive Officer (CEO) at IDFC First Bank, will take a pay cut of 30 per cent, including in fixed compensation as well as all allowances, according to a statement.
Vaidyanathan said, "Such pay cut forms part of the Bank's austerity measures which start at the top. Further, we feel the pain our customers, big, small, micro enterprises and people at large are going through, and we also want to be empathetic to the situation."
The Bank said that it has paid 100 per cent of the variable pay to 78.2 per cent of the employees for the period pertaining to FY19-20 despite the onset of the pandemic.
Variable pay for FY19-20 was cut more progressively for employees with greater seniority, and bonus for the senior management was cut by 65 per cent of the eligible amount.
On the employee front, the Bank has honoured all the offers made to new recruits before the pandemic, including all lateral hires as well as 550 management trainees.
The management is reviewing the impact of the pandemic every day and is making all efforts to safeguard the customers' interests.
The Bank's branches and customer service teams have been operating at near to full capacity with minimal reduction in services throughout the lockdown to meet its customers' needs, the statement said.
( With inputs from IANS )