19 hrs ago
CAG Calls for Uniform Rules on IIM Directors’ Variable Pay
India’s top auditor, the Comptroller and Auditor General, reviewed a payment made to the director of IIM Rohtak.
The payment was Rs 3.2 crore in variable pay.
Variable pay is extra money linked to how well someone performs their job.
The CAG found procedural and regulatory irregularities in approving the payment.
It said the Ministry of Education should create one clear set of rules for all IIM directors.
The law allows such payments when performance goals are set in regulations.
IIM Rohtak’s rules say its board must create a performance scorecard for the director.
They also say the director must stay out of decisions where there is a conflict of interest.
The CAG flagged procedural and regulatory irregularities in approving Rs 3.2 crore in variable pay for IIM Rohtak director Dheeraj Sharma.
It recommended that the Ministry of Education establish a uniform, transparent and fiscally prudent framework for directors’ variable pay.
The IIM Act, 2017 allows directors to receive variable pay based on performance objectives specified in regulations.
IIM boards are empowered to frame regulations, including the performance objectives used to determine variable pay.
IIM Rohtak’s regulations took effect on October 25, 2021, and require a performance matrix and recusal in conflict-of-interest matters.
- Who
- The Comptroller and Auditor General, the Ministry of Education, and IIM Rohtak director Dheeraj Sharma.
- What
- The CAG flagged irregularities in approving Rs 3.2 crore in variable pay and recommended a uniform framework for such payments.
- Where
- The issue concerns the Indian Institute of Management Rohtak.
- When
- IIM Rohtak’s regulations became effective on October 25, 2021.
- Why
- The CAG cited procedural and regulatory irregularities and called for transparent and fiscally prudent rules.
Key facts
- Payment under review
- Rs 3.2 crore in variable pay
- Recipient
- Dheeraj Sharma, director of IIM Rohtak
- Auditing body
- Comptroller and Auditor General
- Recommended framework
- Uniform, transparent and fiscally prudent rules
- Relevant law
- IIM Act, 2017
- Regulations effective
- October 25, 2021
- Required safeguards
- A board-developed performance matrix and recusal in conflicts of interest
Sources
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