Yes Bank's managing director and chief executive Prashant Kumar, a veteran SBI hand who joined the bank as part of its bailout, is set to be paid a total remuneration of Rs 2.84 crore. In a notice to shareholders for the annual general meeting on September 10, the bank also said that it is looking at trebling up stock options to be granted to senior executives to 22.5 crore, in what can be seen as a move to retain talent.
Kumar joined the bank after retiring as the chief financial officer of SBI, after the Yes Bank's board was replaced by the government and the Reserve Bank to protect interests of the depositors as the financial position of the bank became precarious and it was unable to raise new capital.
Typically, officials serving state-run banks are paid much lower emoluments. Under Kumar, the bank has already completed a Rs 15,000-crore capital raise. Shareholders will be considering and adopting a resolution on the salary for Kumar, who has been appointed till March 26, 2021, at the virtual AGM, according to the notice.
The MD's suggested remuneration includes a basic salary of Rs 45 lakh, allowances of Rs 1.05 crore, and furnished accommodation of Rs 72 lakh, among other heads, the notice said.
It intends to pay Kumar Rs 8.19 lakh for the services rendered as the 'administrator' of the bank between March 5 and March 25, when he was appointed as the CEO and MD and a resolution towards the same will be considered and adopted. A special resolution on amending the employee stock options scheme by focusing on increasing the base will also be considered at the meeting, as per the notice.
The total options available will be increased by 15 crore to 22.5 crore from the earlier 7.5 crore and the nomenclature of the scheme will also be changed to YBL ESOS 2020, as per the notice. Other resolutions to be considered and adopted at the AGM also include a change in the articles of association, which seem to focus largely to reflect the changed promoter status, according to the notice.