Combating Covid-19! This bank's management to take big pay cut but gives 100 pct salary variable to employees

Covid-19 pandemic continues to hit economies across the world. The pandemic has resulted in huge job losses, pay cuts and what not, leaving employees glum! And, now in the latest development, IDFC FIRST Bank has announced that its senior management has volunteered to take a 10% cut in compensation in the current financial year 2020-21. Also, V Vaidyanathan, MD & CEO, IDFC FIRST Bank, has voluntarily offered to take a pay cut of 30% in his compensation including Fixed compensation as well as all allowances.  

Vaidyanathan said, “Such pay cut forms part of the Bank’s austerity measures which start at the top. Further, we feel the pain our customers, big, small, micro enterprises and people at large are going through, and we also want to be empathetic to the situation.”

Noteworthy, IDFC FIRST Bank’s employees voluntarily contributed one day’s salary totalling Rs. 3.29 crore to the PM CARES Fund. In addition, the Bank contributed Rs 5 crore to the PM CARES Fund to support the nation’s fight against coronavirus. Moreover, Vaidyanathan personally contributed Rs. 47 lacs to COVID relief, including Rs. 25 lacs to the PM CARES Fund for COVID Relief and Rs. 5 lacs for Chief Ministers COVID Relief Fund. Inclusive of employees’ contribution, the Bank contributed a total amount of Rs. 10.86 crore towards the COVID Relief related activities so far and continues its work in this area. A large number of these activities are centered in Maharashtra. 

"The management is reviewing the impact of the pandemic every day and is making all efforts to safeguard customer interest in line with its mission statement which recognizes the customer as its First Stakeholder. The Bank’s branches and customer service teams have been operating at near-to full capacity with minimal reduction in services throughout the lockdown to meet its customers’ needs," the bank said in a statement.

On the employee front, the Bank has honored all offers that were made to new hires before the pandemic, including all lateral hires as well as 550 management trainees. This is in keeping with the Bank’s philosophy of honoring its commitments in all circumstances.

100% of the variable pay to 78.2%

The Bank also paid 100% of the variable pay to 78.2% of employees for the period pertaining to FY 19-20 despite the arrival of the pandemic. Variable pay for FY 19-20 was cut more, progressively, for employees with greater seniority, and bonus for senior management was cut by 65% of the eligible amount.