The Company has formulated a policy called “Remuneration Policy” to ensure the payment of equitable, competitive remuneration to key managerial personnel, senior management and all employees of the Company which is based on individual performance, Company’s benchmark, Industry practices and performance of the Company as a whole.
2. Key Principles
The following set of principles act as guiding factors:
(a) Performance measures and targets to be aligned with the Company’s corporate strategy and its shareholders’ interest;
(b) Promote a culture of “Pay for Performance” as its business drivers; and
(c) Reflective of market competitiveness so as to attract the best talent.
3. Objective And Purpose
(1) To determine remuneration based on the Company’s business outlook, financial position, growth and trends and practices on remuneration prevailing in competitive compensation;
(2) To align reward and recognition mechanism directly to the effort, performance, dedication and achievement relating to the Company’s operations;
(3) To attract, retain, motivate and promote talent and to ensure long term sustainability of talented persons and create competitive advantage; and
(4) To ‘Pay for Performance’ i.e. the remuneration shall be linked to the individual performance and to strike the right balance between fixed and variable pay reflecting short and long term performance objectives appropriate to the goals of the Company.
4. Key Managerial Personnel, Senior Management & Employees
The compensation for the key managerial personnel, senior management and employees of our organization would be guided by the external competitiveness and internal parity through annual benchmarking surveys. The remuneration structure is broadly divided into fixed and variable components. The fixed component comprises salary, allowances, perquisites, benefits-in-kind etc. The variable component comprises annual performance bonus of the individual employee and Company’s performance as a whole.
Internally, performance ratings of all employees would be spread across a normal distribution bell curve. The rating obtained by an employee will be used as an input to determine bonus payout and annual pay increases. Variable and annual pay increase will be calculated using a combination of individual performance and organizational performance. Compensation can also be determined based on identified skill sets which is critical to the success of our organization. It is determined as per management’s review of market demand and supply, Industry benchmarks etc.
The competitive comparator is selected based on Industry Relevance, Task relevance and Size of Organization.
5. Pay For Performance
A distribution bell curve is built to maintain significant differential between low, average and high performers. Remuneration Policy emphasis on performance besides taking into consideration of employees’ attendance record and disciplinary issues. The variable and annual pay increase are determined based on the standard evaluation matrix prevailing in the organization.
6. Review Policy
This Policy has been endorsed by the Board. It shall be reviewed by the Nomination and Remuneration Committee (“NRC”) and updated from time to time to ensure the Group remains at the forefront of best practices in corporate governance. Any subsequent amendments to this Policy should be endorsed by the Board upon recommendation by NRC.