Several Founders, Co-Founders, CXO Bankers, CXO Fintech professional & people who participated in the ePanel discussions:
- Dr. R Bhaskaran, Strategic Training Advisor in Banking & Finance
- Mr. Jayesh Shah, CEO, Prism Cybersoft Private Ltd
- Ms. Arushi Govil, Senior Manager – Legal, PayU Payments Pvt. Ltd
- Ms. Hemal Vira, Former GEVP & Head- NRI Products, Remittances and International Alliances, YES Bank
- Mr. Rakesh Bhanusali, Head of NRI- Sales, RBL Bank
- Mr. Saurabh Sharma, Head-Consumer Banking, India, DOHA Bank
- Mr. Avro Mukerji, Investment Counselor- NRI Burgundy, Axis Bank
- Mr. Shashank Chowdhury, Former Managing Director -India, Infinite Zero OR Independent Consultant
- Mr. Vikas Pahwa, Vice President Transaction Banking, Citi
- Mr. Piush Kothari, Head of Business Operation, Walt Disney Direct to Consumer & International
- Mr. Arun Tanksali, Co-founder & CTO, Nearex
- Mr. Prasanna Divekar, Principal, Renaissance India Partners
- Mr. Abhishek Arun, Senior Vice President, Paytm
- Mr. Abhishek Mody, Associate Director-Payment & Digital Initiatives, IDFC Bank
- Vikas R Panditrao, Co-Founder, Forum of Industry and Academic Knowledge Sharing (FIAKS)
- Many other CEO/CXO Bankers & Fintech professionals on FIAKS Forum requested to remain anonymous
Here goes the debatable headline “DBS chief executive’s pay up by 2% to $12.1m last year” [1] So FIAKS Community members raised this question – why bank CEOs need to be given such monies $ 12,000,000 as stated in the news above? While on the contrary State Bank of India (SBI), in its annual report 2017-18, mentioned that Rajnish Kumar, the Chairman and Managing Director of the bank drew a gross salary of Rs 14,25,594 (approx USD 20,000) by March 31, 2018.
Question: What salary is being paid to the amazingly talented CEOs of many cooperative banks which are far better managed than private sector banks? Isn’t something going wrong here?
First, let’s just evaluate public sector banks:
- A member questioned who will factor the lavish house of SBI and the after retirement benefits/perks. Why don’t we compare salaries of secretaries in the government with CEOs? He further added; “A lot of my family members were civil servants and they earned less than I currently do but that was just the salary, the perks and benefits were of a different level and I am not talking about corrupt civil servants and PSU bankers.” The salary of Rajnish Kumar as per the annual report 2019 is Rs. 29,53,750 this is Basic+DA. Other perquisites like accommodation, transport is not included in this. Another member mentioned the experience of an SBI Branch Manager. He was under 40 and joined SBI from a leading private telecom company couple of years back. His salary came down almost less than half of what he made. But he was happy with the perks he got and in comparison to his peers in private banks, he was very much close to the salary drawn by them vis-a-vis his salary + perks and the job satisfaction and less pressure and no risk to a pink slip (a notice of dismissal from employment).
- Another community member thrashed this argument by saying this was true then all Private and MNC Bankers would have joined government institutions which is not happening. Why?. Today when we talk about corruption in Banking, Private and MNC Banks are clearly leading. Check out frauds reported on ICICI Bank, YES Bank, Wells Fargo Bank…
- Having said that, there is a huge disparity between the salaries at all levels of public and private sector banks. The disparity becomes more pronounced at higher levels as the private sector top management is relatively free to define their pay while public sector top management is subject to governmental frameworks.
Check out these responses of members to be pondered upon concerning the salary gap:
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