COVID-19 breakout: IDFC Bank senior management takes 10% compensation cut will pay 100% variable pay to 78% staff

IDFC First said on Monday its senior management has volunteered to take a 10 percent cut in compensation during the current financial year 2020-21.

Managing Director and CEO V Vaidyanathan have voluntarily offered to take a pay cut of 30 percent in his compensation, including fixed compensation as well as all allowances.

“Such pay cut forms part of the bank’s austerity measures which start at the top,” he said.

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“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.”

On the employee front, the bank said it has honoured all offers that were made to new hires before the pandemic, including all lateral hires as well as 550 management trainees.

It also paid 100 percent of the variable pay to 78.2 percent of employees for FY20. Variable pay for FY20 was cut more progressively for employees with greater seniority and bonus for senior management was cut by 65 percent of the eligible amount.

In addition, the lender contributed Rs 5 crore to the PM CARES Fund to support the nation’s fight against coronavirus.