RBI issues new compensation norms for pvt bank CEO remuneration

Published on: Nov 5, 2019

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The Reserve Bank of India (RBI) has told private banks to raise the variable portion of remuneration to at least half of the total for their chief executives and whole-time directors so that top management rewards reflect the 'pay for performance' principles.The RBI has also streamlined the clawback rules for whole-time directors and material risk takers to penalise them if future financial performance falters and discourage excessive risk taking for short term gains.

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