Yes Bank restructures salary of senior leadership team

Mumbai

The move to allocate 30 per cent of the total cost to company as variable pay is applicable to the “leadership team” for FY21, an official statement from the bank said, without detailing who are part of the team.

Generally variable pay to staff is linked to the commercial success of an entity or other specified milestones. The move comes at a time when there are widespread concerns on employment, with a lot of firms even retrenching workers.

Within the banking industry, its larger rival Kotak Mahindra Bank has announced pay cuts for all the employees earning above Rs 25 lakh per annum.

“COVID-19 situation has exacerbated the gradually slowing growth momentum in the global economy and the revival of the economy will, to a great extent, depend on the robustness of the financial services sector,” the Yes Bank statement said.

The bank is appreciative of the leadership team for their “unstinted support, demonstrating the highest level of ownership and commitment,” it added.

Earlier, the bank had contributed Rs 10 crore to the PM-CARES Fund. On Saturday, Yes Bank said there will be reclassification of shareholding as the Madhu Kapur group has consented to be categorised as public stake holders. This is to inform that the Bank has received a letter dated May 28, 2020 (received on May 29, 2020) from Madhu Ashok Kapur; Shagun Kapur Gogia; Gaurav Ashok Kapur; and Mags Finvest Private Ltd (collectively referred to as Madhu Kapur Group) consenting to reclassify their shareholding in the Bank as ‘‘non-promoter shareholders’’ (ie public shareholders), it said in a regulatory filing. “The Bank would take further necessary action to give effect to this,” it added.

Yes Bank was co-founded by Rana Kapoor along with Madhu Kapur’s late husband Ashok Kapur as a new age private sector bank in 2004.