AI to pare down perks of top brass

New Delhi: Babus may think twice before accepting top positions like CMD or director in Air India as aviation ministry is finally paring down the exorbitant perks here to general industry levels. This will mean a hit to both the salary and free travel enjoyed for years by the top management.
The lifetime free travel for CMDs may go. The long list of family members of a serving CEO entitled to free tickets will be pruned from the current joint to a nuclear family. Over the years, this list has been expanded to include daughters and sons-in-law in IA to a no holds barred for AI chief who could have included anyone in that list.
Apart from this, aviation ministry has also asked AI to see if the performance-linked incentive (PLI) that the six functional directors and 30 executive directors get are within government norms. Directors get a monthly PLI of Rs 60,000-85,000. Now, the AI board will meet on Wednesday in Chennai to take up this issue.
‘‘We have told AI that the PLI is within department of public enterprise guidelines. If the guidelines are being followed then there’s no problem, otherwise, the board must get it within the norms,’’ said a top official. AI has an annual wage bill of over Rs 3,300 crore of which nearly Rs 1,500 crore is paid as PLI.
10/11/09 Saurabh Sinha/Times of India

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Categories: NACIL Nov 2009