The increase, which could reach 100%, would be linked to performance, based on parameters such as asset monetization, project execution speed, profits and other benchmarks, according to the proposal being examined by the Department of Public Enterprises“The remuneration received by top executives in CPSEs is very low compared to the private sector and this makes it difficult to retain talent,” a senior official told ET, adding that the remuneration has been proposed to be doubled.
The proposal could be sent to the Cabinet Committee on Economic Affairs for consideration before the budget is presented in the second half of this month, the official said. Performance-linked incentives may be different for CPSEs, depending on the target set by the administrative ministry and their respective boards, according to the official. The proposal involves allowing Power supply boards to make such a decision, the official said.
He Public Enterprise Selection Board He had also suggested increasing remunerations as he was finding it difficult to get candidates for leadership positions. “There is a consistent response from PSEB that the packages should be lucrative enough to attract the right kind of candidate,” the official said.
The current proposal does not imply a general increase in the salaries of workers. CPSE According to the official, this is a long process that requires a broader discussion and detailed study. The move is part of the government’s larger vision of making strategic public sector enterprises (PSUs) more competitive, efficient and technologically friendly. The NITI Aayog is separately working to increase the competitiveness of PSUs. “There will be a multi-ministerial approach to make our CPSEs more competitive,” another official said.
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