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A PRESENTATION ON PMS & PRP

A PRESENTATION ON PMS & PRP. NHPC PROFILE. INTRODUCTION. Remuneration of Executives, Supervisors were revised w.e.f. 01 st January 2007 in line with the guidelines mentioned vide Department of Public Enterprises (DPE) vide OM dated 26 th November 2008.

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A PRESENTATION ON PMS & PRP

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  1. A PRESENTATION ON PMS & PRP

  2. NHPC PROFILE

  3. INTRODUCTION • Remuneration of Executives, Supervisors were revised w.e.f. 01st January 2007 in line with the guidelines mentioned vide Department of Public Enterprises (DPE) vide OM dated 26th November 2008. • Compensation Package consists of two part: • FIXED Pay consisting of Basic, Dearness allowance, and allowances under Cafeteria approach. • Variable Pay consisting of Performance Related Pay (PRP) based on the profits of the CPSE and performance of the executives.

  4. Remuneration Committee • For Deciding the distribution of annual bonus/variable pay pool and policy for its distribution across the executives and Non-unionized Supervisors, within the prescribed limits a Remuneration Committee has been constituted. • The members of Remuneration Committee are: • Smt. Komal Anand, Independent Director (Chairperson) • Sh Raman Sidhu, Independent Director, • Dr. K. Mamkoottam, Independent Director. • Remuneration Committee finalised the scheme for NHPC in line with DPE. • The Scheme has been put up to Board for approval.

  5. PRP SCHEME Salient Features

  6. ELIGIBILTY • Scheme to be implemented from FY 2007-08. • The scheme is applicable to:- • All Executives including CMD & Functional Directors

  7. FORMULA FOR CALCULATION OF PRP: FORMULA TOTAL PRP = ( PRP from Current year PBT) + (PRP from Incremental PBT) PRP from Current year PBT =0.6 x Annual Basic x Mo x Pi x Grade factor x Available Amount / Required Amount PRP from Incremental Profit=0.4 x Annual Basic x Mo x Pi x Grade factor x Available Amount / Required Amount Where Mo = Company Performance ( MOU ratings) and Pi = Individual Performance factor

  8. Company Performance (MOU Rating) Factor (Mo) • Corporation Performance (MOU Rating) Mo shall be taken from the table given below No PRP shall be admissible in case CPSE achieves POOR Rating

  9. Individual Performance Factor (Pi) • Individual Performance Factor (Pi) shall be taken from the Table below: Table for PMS Score Table for PAR Rating In Order to Assess the Performance of Executive, a Robust and Transparent Performance Management System is available which is modified from time to time as per the direction of DPE.

  10. GRADE FACTOR • Grade factor shall be used as per Table below:

  11. Performance Management System

  12. Performance Management System has been divide under two categories: • PMS for CMD, functional Director, Executive Directors (E-9) and General Managers (E-8) as per DPE Guideline. • PMS for other Executives (E7 to E1).

  13. PMS FOR CMD, FUNCTIONAL DIRECTOR, EXECUTIVE DIRECTORS AND GENERAL MANAGERS AS PER DPE GUIDELINE. Assessment of the Performance is subdivided under three categories with percentage as mentioned below:

  14. Overall Grading (on a grade of 1-5) is done based on the grades awarded under MOU Performance, Individual Performance and Personal Attributes. • Bench Marking is done as per the table mentioned below:

  15. PMS FOR OTHER EXECUTIVES. Assessment of the Performance is subdivided under four categories and relative grading for various grade is as tabulated below:

  16. Overall Grading (on a grade of 0-100) is done based on the grades awarded under Performance, Competency, Values and Potential Appraisal under specified weightage. • Bench Marking is done as per the table mentioned below:

  17. PRP Payout

  18. FINANCIAL IMPLICATION FOR PRP ` in crores

  19. POINT OF DISCUSSION As per DPE Circular Dated 26.11.2008, The Available Amount for Executives and Non-unionized Supervisors is Sum of 3 % of Current year PBT and 10 % of Incremental PBT subject to overall ceiling of 5 % of Current year PBT. Whether the WORKMEN are to be covered in the above?

  20. THANK YOU

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