Finance Ministry Unveils PLI Scheme for Senior Executives of Public Sector Banks

Current Context: On November 20, 2024, the Finance Ministry unveiled a revised Performance-Linked Incentive (PLI) scheme for senior executives of Public Sector Banks (PSBs).

• This initiative aims to reward and motivate employees for their contributions to the value creation within the banks.
• Key Points:
• Eligibility: Executives from the rank of Chief Manager and above are included.
• Incentive Structure: The PLI ceiling varies by rank. For Managing Directors and Chief Executive Officers, the ceiling is set at 100% of their annual basic pay.
• Objective: To align the incentives of senior bank executives with the overall performance and health of the bank, encouraging improved performance and accountability.

Question:

1 What is the maximum Performance-Linked Incentive (PLI) ceiling for Managing Directors and Chief Executive Officers under the revised Performance-Linked Incentive (PLI) scheme?

• A) 50% of their annual basic pay
• B) 75% of their annual basic pay
• C) 110% of their annual basic pay
• D) 100% of their annual basic pay

Answer: D) Under the revised PLI scheme, the maximum incentive ceiling for Managing Directors and Chief Executive Officers is set at 100% of their annual basic pay.