Days after of mutual funds revealing remuneration of its top executives after market regulator SEBI’s order, insurance companies have also been asked to provide information on executive pay.
According to ‘The Economic Times’ report, Insurance Regulatory and Development Authority of India ( IRDAI ) has asked insurance firms s to release details of remuneration paid to key executives from 2016-17.
It has has authorised insurance companies to reveal remuneration of managing director (MD), chief executive officer (CEO) and important management persons in its revised guidelines on corporate governance.
"Elements of remuneration package (including incentives) of MD & CEO and all other directors and key management persons should be disclosed," the regulator said.
Insurance firms now divulge salaries in a combined form. Though insurance companies reveal the remuneration of MDs and CEOs in their annual reports, they do not have details on pay of other key officials. Moreover, incentives paid to key management persons are also typically not included.
Moreover, insurers should provide details of remuneration paid to independent directors.
"All pecuniary relationships or transactions of the non-executive directors vis-a-vis the insurance company shall be disclosed in the annual report," IRDAI said.
Financial performance should also be disclosed, it said. The new guidelines are though not applicable for reinsurance companies and branches of foreign reinsurers in the country.
MFs have only started disclosing details on executive pay only now. MFs were not releasing the remuneration paid to its star fund managers. They started to disclose compensation paid to key managerial personnel (KMP) only recently.