State Bank of India (SBI) has invited applications for the post of Chief Financial Officer (CFO), offering a salary three times more than its chairman. The CFO will be hired on a contractual basis at a salary package of Rs 1 crore, according to the recruitment notice. The position is for a contract period of three years and the annual CTC (cost to company) and perks would be Rs 75 lakh to Rs 1 crore, it said.
As per SBI's annual financial annual report, Chairman Rajnish Kumar received Rs 29,53,750 for FY19, while in comparison major private lender HDFC Bank CEO got Rs 55 crore as annual compensation for the year even though HDFC Bank manages around one-third of assets as compared to SBI.
"Minimum 15 years' post qualification work experience (as on 01.04.2020) in overseeing financial operations, preferably accounting and taxation matters, in banks/ large corporates/ PSUs/ FIs/ financial services organizations, of which 10 years should be in bank or financial institutions (of which five years should be at senior management level)," it said. The CFO position is currently held by Chalasani Venkat Nageswar, a Deputy Managing Director of the bank.
During a recent conference call with analysts, Rajnish Kumar was asked if the SBI would also follow its private peers in announcing pay cuts, to which the SBI chairman replied jokingly, saying "road pe aake rehna padega, pehle hi itni kam milti hai (I'll have to live on road, I already get so little)". Several private lenders including Yes Bank, IDFC First Bank and Kotak Mahindra Bank have recently announced salary cuts for senior management from 10 to 30 per cent amid the coronavirus pandemic.