FINMIN Order : Payment of Performance Related Pay (PRP) in the absence of Independent Director, the Chairman of the Remuneration Committee

Payment of Performance Related Pay (PRP) in the absence of Independent Director, the Chairman of the Remuneration Committee

F.No. W-02/0027/202 1-DPE(WC)-GL-IX/2021
Government of India
Ministry of Finance
Department of Public Enterprises
***

Public Enterprises Bhawan
Block 14, CGO Complex,
Lodhi Road, New Delhi-110003
Dated: 1st September, 2021

OFFICE MEMORANDUM

Subject: Payment of Performance Related Pay (PRP) in the absence of Independent Director, the Chairman of the Remuneration Committee-reg

The undersigned is directed to refer to DPE’s OM dated 26.11.2008 & 03.08.2017 regarding pay revision of Board Level & Below Board level Executives and Non-Unionized Supervisors of Central Public Sector Enterprises(CPSEs) w.e.f. 01.01.2007 & 01.01.2017 respectively, having the provision of payment of PRP , wherein Remuneration Committee headed by the Independent Director is essential element for the payment of PRP.

2. In the absence of the Independent Director in a CPSE, the function of Remuneration Committee with respect to payment of PRP as specified in 2007 & 2017 pay revision guidelines would only be carried out in consultation with the concerned Financial Advisor of the respective Administrative Ministry/Department. However, this would be an interim arrangement for the CPSE for payment of PRP till an Independent Director is appointed in the CPSE.

3. All Administrative Ministries/Departments of the Government of India are requested to bring the foregoing to the notice of the CPSE under their administrative control for necessary action at their end.

This issues with the approval of the Competent Authority.

(Naresh Kumar)
Under Secretary