Air India scraps performance incentive payments of top management
12 Nov 2009
New Delhi: Air India's one-step-forward-two-back movement on restructuring itself continued unabated when it decided to slash the performance-linked incentive (PLI) component of the salaries of its functional and executive directors, on Wednesday. PLI accounts for 60-80% of the total package of the take home pay of the top management and, predictably, resentment is simmering at the upper echelons of the merged airline.
While PLI has been slashed for directors who have risen to their posts from within the ranks of the organisation, it has been completely scrapped for those who are serving on deputation from other government services, such as the Indian Administrative Service (IAS) or the Indian Police Service (IPS).
The slash in PLI has been brought about under the Department of Public Enterprise guidelines which lay down that PLI can't exceed more than half the salary.
In all, 36 directors of the AI-IA combine would be paid anything between Rs55,000 and Rs5.2 lakh as PLI every month.
Airline sources said that ex-officio Government nominees on the board will not be eligible for any PLI. Officers on deputation from the IAS and the IPS will also not be eligible for any PLI, even if they should be appointed to the CMD position.
The government move would result in a ridiculous situation that senior-most members of the organisation will now be taking homeless salary than their juniors.
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