ICICI Bank 2013 Annual Report Download - page 26

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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 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 wholetime Directors and equivalent positions.
` 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
Shares
Shares-linked instruments1 (nos.)
Other forms
54.7
Nil
2,533,000
Nil
Total amount of deferred remuneration paid out Nil
Breakdown of amount of remuneration awards
Fixed2
Variable3
Deferred4
Non-deferred
133.8
74.6
29.9
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.
Directors’ Report