ICICI Bank 2014 Annual Report Download - page 140

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as well as employees, incorporate relevant risk management related aspects. For example, in addition to
performance targets in areas such as growth and profits, performance indicators 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 are 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 while ensuring that such pay-outs are in accordance with the requirement of RBI
from time to time. The Bank ensures higher proportion of 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, 2014
Year ended
March 31, 2013
Number of meetings held by the BGRNC ......................................................... 53
Remuneration paid to its members (sitting fees) .............................................. 0.3 0.2
Number of employees having received a variable remuneration award ........ 67
Number and total amount of sign-on awards made ........................................ Nil Nil
Details of guaranteed bonus paid as joining/sign on bonus ............................. Nil Nil
Details of severance pay, in addition to accrued benefits ................................. Nil Nil
Total amount of outstanding deferred remuneration
a) Cash ................................................................................................................ 72.5 54.7
b) Shares ............................................................................................................ Nil Nil
c) Shares-linked instruments (nos.) ................................................................... 2,796,500 2,533,0001
d) Other forms .................................................................................................... Nil Nil
Total amount of deferred remuneration paid out ............................................. 8.3 Nil
Break-down of amount of remuneration awards
a) Fixed2 .............................................................................................................. 150.1 133.8
b) Variable3 .......................................................................................................... 65.3 74.6
c) Deferred4 ........................................................................................................ 26.1 29.9
d) Non-deferred ................................................................................................. 39.2 44.8
Total amount of outstanding deferred remuneration and retained
remuneration exposed to ex-post explicit and/or implicit adjustments
at March 31 .......................................................................................................... 72.5 54.7
Total amount of reductions due to ex-post explicit adjustments ...................... Nil Nil
Total amount of reductions due to ex-post implicit adjustments ...................... Nil Nil
1. Pursuant to grant of options under ESOS. Of these options, 75,000 options granted to a President who retired subsequently,
vested fully on April 27, 2013.
forming part of the Accounts (Contd.)
schedules