The step will give more clarity to the extent of variable pay with respect to the total remuneration of directors and KMPs, variable pay deferral, malus and clawback provisions, accounting disclosures, said the IRDAI
Hyderabad:
The existing framework, in operation since 2016, for remuneration of non-excecutive directors and CEOs, whole time directors and managing directors of private sector insurers will now also be applied to their other Key Managerial Persons(KMPs), proposed IRDAI and asked for comments from all the stake holders on the proposals on Wednesday.
The step will give more clarity to the extent of variable pay with respect to the total remuneration of directors and KMPs, variable pay deferral, malus and clawback provisions, accounting disclosures, said the IRDAI.
The IRDAI said the step will ensure effective governance of compensation, ensure alignment of compensation with prudent risk taking, ensure effective supervisory oversight and stakeholder engagements and to ensure safety of policyholders and other stakeholders.