Mumbai, India – January 29, 2025 – Yes Bank Limited (NSE: YESBANK, BSE: 532648) has announced a postal ballot seeking shareholder approval for key executive appointments, revised remuneration structures, and performance-based pay for top leadership. The resolutions, which include the appointment of Mr. Manish Jain as Executive Director and revisions to the compensation of MD & CEO Mr. Prashant Kumar and Executive Director Dr. Rajan Pental, reflect Yes Bank’s strategic focus on leadership stability and financial incentives aligned with business performance.
Key Resolutions and Leadership Appointments
The postal ballot notice dated January 25, 2025, includes the following four key resolutions:1. Appointment of Mr. Manish Jain as Executive Director
- Effective Date: December 11, 2024 – December 10, 2027 (Three-year term)
- Current Role: Country Head - Wholesale Banking, Yes Bank
- Prior Experience: 30+ years in corporate and wholesale banking, with leadership positions at Standard Chartered Bank, Ernst & Young, GE India, and Maruti Suzuki.
- Fixed Compensation (FY25): ₹3.43 crore annually, including:
- Basic Salary: ₹1.03 crore
- Allowances & Perquisites: ₹2.40 crore (includes Rent Allowance ₹51.5 lakh, retirement benefits, and other fixed allowances)
- Variable Pay (FY24 Performance-Based): This has not yet been determined and is subject to the Reserve Bank of India (RBI) approval.
2. Revised Remuneration and Performance-Based Pay for MD & CEO Mr. Prashant Kumar
- Fixed Compensation (FY25): ₹3.85 crore, including:
- Basic Salary: ₹72.67 lakh
- Perquisites & Benefits: ₹3.12 crore (includes furnished housing worth ₹72 lacks, two cars, club memberships, and insurance benefits)
- Performance-Based Variable Pay for FY24: ₹4.04 crore, comprising:
- Cash Component: ₹1.51 crore
- Stock Options (PESOPs): ₹2.52 crore
- Total FY25 Pay Package (Fixed + Variable): ₹7.89 crore, subject to RBI deferral conditions.
3. Revised Compensation for Executive Director Dr. Rajan Pental
- Fixed Compensation (FY25): ₹3.37 crore, including:
- Basic Salary: ₹1.14 crore
- Perquisites & Benefits: ₹2.23 crore (Rent Allowance ₹52.5 lakh, driver allowance ₹9 lakh, club memberships, and insurance)
- Performance-Based Variable Pay for FY24: ₹2.67 crore, comprising:
- Cash Component: ₹1.06 crore
- Stock Options (PESOPs): ₹1.60 crore
- Total FY25 Pay Package (Fixed + Variable): ₹6.04 crore, subject to RBI deferral conditions.
4. Approval of Performance-Based Pay Framework for Senior Executives
- Governed by RBI Circular No. RBI/2019-20/89, ensuring that executive compensation aligns with financial performance and regulatory guidelines.
- Performance-based pay is subject to clawback and malus clauses, preventing payouts in case of financial underperformance or regulatory violations.
Strategic Implications and Market Outlook
1. Strengthening Leadership Stability
The appointment of Manish Jain aligns with Yes Bank’s strategic goal of reinforcing corporate and wholesale banking. His deep experience in risk management, credit analysis, and client relationships is expected to boost corporate lending, syndications, and advisory services.2. Competitive Compensation to Retain Talent
- Yes Bank’s pay structure is designed to attract and retain top leadership talent, keeping salaries competitive within the banking sector.
- A mix of fixed Salary, cash incentives, and stock options aligns executive compensation with the Bank’s performance and shareholder value.
3. Regulatory Compliance and Shareholder Governance
- RBI approvals are required for all executive pay revisions to ensure compliance with banking regulations.
- Shareholder approval via postal ballot strengthens transparency and corporate governance.
Voting Timeline & Shareholder Engagement
- E-Voting Period: January 30, 2025 (10:00 AM IST) – February 28, 2025 (5:00 PM IST).
- Voting Platform: NSDL e-voting.
- Results Announcement: On or before March 4, 2025.
Conclusion: A Strategic Move to Reinforce Leadership and Growth
Yes Bank’s proposed executive appointments and revised compensation structures focus on leadership continuity, financial discipline, and performance-driven incentives. With RBI oversight and shareholder transparency, the move is expected to instill investor confidence while positioning the Bank for sustained growth in retail and wholesale banking segments.As Yes Bank expands its footprint in corporate banking, technology-driven financial services, and risk management, stakeholders will closely monitor the leadership impact on operational and economic performance in the coming quarters.