AI scraps performance incentives

New Delhi: Air India on Wednesday decided to drastically cut the salaries of its top management — functional and executive directors.
The performance-linked incentive (PLI) component of their pay, which accounts for 60% to 80% of the total package, has been completely scrapped for those on board on deputation from the government. The 36 AI-IA directors used to get anywhere between Rs 55,000 and Rs 5.2 lakh as PLI every month.
Airline employees who have made it to the board after years of service will face a huge cut in PLI as this has now been brought within department of public enterprise guidelines under which PLI can't be more than half of the salary. For instance, the ED (operations) has a basic salary of Rs 73,240 with a monthly PLI of Rs 521,425.
Similarly, ED (engineering) has a salary of Rs 76,169 and a monthly PLI of Rs 162,529. Now following Wednesday's board decision — taken amid stiff opposition from directors, PLIs can't be more than half the salary which would mean a knock of almost Rs 4.9 lakh and Rs 1.2 lakh per month for the EDs operation and engineering. The non-technical board members used to get a PLI of under a lakh which would also get slashed.
12/11/09 Saurabh Sinha/Times of India

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Categories: NACIL Nov 2009