Changing matrix: CPSE staff’s pay to depend on M-cap too, greater role for asset sales

The staff of central public sector enterprises (CPSEs) – which are around 250 in number now – may lose on their performance-related pay (PRP), if the firms fail to meet the market capitalisation goals. M-cap performance will be added to the set of parameters governing PRP in the customary memorandum of understandings (MoUs) being signed between the government as the owner and individual CPSEs starting 2021-22 financial year, according to official sources.

Similarly, another PRP criterion – performance related to asset monetisation – which was introduced in the MoUs of some PSUs in FY21, will likely be further beefed up, by assigning more weight to it (just 3 marks out of 100 now) in the relevant index.