ICICI Bank 2013 Annual Report Download - page 128

F50
include aspects such as the desired funding profile and asset quality. The BGRNC takes into consideration
all the above aspects while assessing organisational and individual performance and making compensation-
related recommendations to the Board.
d) Description of the ways in which the Bank seeks to link performance during a performance measurement
period with levels of remuneration
The level of performance bonus, increments in salary and allowances and grant of stock options is determined
based on the assessment of performance as described above.
e) Discussion of the Bank’s policy on deferral and vesting of variable remuneration and the Bank’s policy and
criteria for adjusting deferred remuneration before vesting and after vesting
The quantum of bonus for an employee does not exceed a certain percentage (as stipulated in the compensation
policy) of the total fixed pay in a year. Within this percentage, if the quantum of bonus exceeds a predefined
threshold percentage of the total fixed pay, a part of the bonus is deferred and paid over a period. The deferred
portion is subject to malus, under which the Bank would prevent vesting of all or part of the variable pay in the
event of an enquiry determining gross negligence or breach of integrity. In such cases, variable pay already
paid out is also subject to clawback arrangements.
f) Description of the different forms of variable remuneration that the Bank utilises and the rationale for using
these different forms
The Bank pays performance linked retention pay (PLRP) to its front-line staff and junior management and
performance bonus to its middle and senior management. PLRP aims to reward front line and junior managers,
mainly on the basis of skill maturity attained through experience and continuity in role which is a key differentiator
for customer service. The Bank also pays variable pay to sales officers and relationship managers in wealth
management roles. The Bank ensures higher variable pay at senior levels and lower variable pay for front-line
staff and junior management levels.
(B) Quantitative disclosures
The following table sets forth, for the period indicated, the details of quantitative disclosure for remuneration of WTDs
(including MD & CEO) and Presidents.
` in million, except numbers
Particulars Year ended
March 31, 2013
Number of meetings held by the BGRNC ............................................................................................. 3
Remuneration paid to its members (sitting fees) .................................................................................. 0.2
Number of employees having received a variable remuneration award ............................................ 7
Number and total amount of sign-on awards made ............................................................................ Nil
Details of guaranteed bonus paid as joining/sign on bonus ................................................................. Nil
Details of severance pay, in addition to accrued benefits ..................................................................... Nil
Total amount of outstanding deferred remuneration at March 31, 2013
Cash ......................................................................................................................................................... 54.7
Shares ..................................................................................................................................................... Nil
Shares-linked instruments1 (nos.) ........................................................................................................... 2,533,000
Other forms ............................................................................................................................................. Nil
Total amount of deferred remuneration paid out ................................................................................. Nil
Breakdown of amount of remuneration awards
Fixed2 ....................................................................................................................................................... 133.8
Variable3 .................................................................................................................................................. 74.6
Deferred4 ................................................................................................................................................. 29.9
Non-deferred .......................................................................................................................................... 44.8
Total amount of outstanding deferred remuneration and retained remuneration exposed to ex-post
explicit and/or implicit adjustments at March 31, 2013 ......................................................................... 54.7
Total amount of reductions due to ex-post explicit adjustments .......................................................... Nil
Total amount of reductions due to ex-post implicit adjustments .......................................................... Nil
1. Pursuant to grant of options under ESOS. Of these options, 75,000 options granted to a President who retired subsequently, will
vest fully in one year from April 27, 2012.
2. Fixed pay includes basic salary, supplementary allowances, superannuation, contribution to provident fund and gratuity fund by
the Bank.
3. Variable pay for the year ended March 31, 2013 was awarded in the month of April 2013 and is subject to approval from RBI.
4. In line with the Bank’s compensation policy, the stipulated percentage of performance bonus is deferred.
forming part of the Accounts (Contd.)
schedules