TOPIC

Comparison of Compensation Practices: A study based on

United Commercial Bank Limited and Mutual Trust Bank
Limited.

WELCOME TO
OUR
PRESENTATION
PRESENTED BY
SHAHANA PARVEEN URMI KAZI MD. ZAHIR SADI
SN: 20120105048 SN: 20121205037
Dept. of Management Studies Dept. of Management Studies
BSMRSTU. BSMRSTU.
Employees need to be compensated for their efforts based on volume of time or
volume of production. Compensation is a key factor in attracting and keeping the best
employees and ensuring that the organization has the competitive edge in an
increasingly competitive world. Compensation refers to all forms of financial rewards
received by employees. It arises from their employment. Compensation
dissatisfaction can lead to absenteeism, turnover, job dissatisfaction, low
performance, strikes and grievances. The aim of this study is to evaluate the
comparative status of compensation practices of Mutual Trust Bank Limited and United
Commercial Bank Limited.
 Overview of Mutual Trust Bank Limited At a glance
Name of the Institution
Date of Incorporation
Commencement of operation
Authorized Capital
Paid up Capital
Targeted Customers
Chairman
Managing Director
Web address
Registered Office
Mutual Trust Bank Limited
September 29, 1999
October 24, 1999
Tk. 200.00 million (initial)
Tk. 10.00 billion (as on 31 December, 2010)
Tk. 100.00 million (initial)
Tk. 2120.00 million (as on 31 December, 2011)
Individuals and Corporate customers
Mr. M. A. Rouf, JP
Mr. Anis A. Khan
www.mutualtrustbank.com
MTB Centre, 26 Gulshan Avenue, Gulshan 1
Dhaka 1212, Bangladesh
 Compensation Management Practices of Mutual Trust Bank Limited
The compensation package has been divided into six segments:

I. Monthly Guaranteed Cash

a. Salary
b. Medical Facilities
c. House Rent Allowance
d. Travel Allowance
II. Annual Guaranteed Cash
a. Annual Increment
b. Festival Bonus
III. Annual Variable Cash
a. Performance Bonus
IV. Terminal Benefits
a. Provident Fund & Gratuity
b.Welfare Funds
V. Employee Loan
VI. Leave
a. Earn Leave
b. Disability Leave
c. Maternity Leave
d. Study leave
 United Commercial Bank Limited at a glance

Name of the Company United Commercial Bank Ltd.

Date of Incorporation June 26, 1983
Date of Commencement of Business June 27, 1983
Authorized Capital Tk. 15,000 million
Paid up Capital Tk. 10,541.31 million
Chairman Mr. M. A. Sabur
Managing Director Mr. Muhammed Ali
Website www.ucb.com.bd
Registered Office Bulus Center, Plot - CWS- (A)-1, Road No
– 34, Gulshan avenue, Dhaka-1212.
 Compensation Management Practices of United Commercial bank Limited
The compensation package has been divided into seven segments:
I. Monthly Guaranteed Cash
a. Salary
b. House Rent Allowance
c. Utilities / Maintenance
d. Medical Allowance
e. Meal Allowance
f. Travel Allowance
II. Annual Guaranteed Cash
a. Annual Bonus
b. Festival Bonus
c. Leave Fare Assistance
III. Annual Variable Cash
a. Performance Bonus
b. Profit Bonus
c. Incentive Bonus
IV. Terminal Benefits
a. Provident Fund
b. Gratuity
c. Pension Fund
V. Monthly Cost of Benefits
a. Company Leased Accommodation
b. Household Effects (Depreciation)
c. Utilities / Maintenance
d. Telephone
e. Company Car (Depreciation)
f. Running and Maintenance Cost
g. Driver’s Wages
h. Registration / Insurance / Tax
i. Entertainment Allowance
j. Canteen Subsidy
k. Club Membership
l. Group Life Insurance
m. Hospitalization Scheme
VI. Loan Scheme
VII. Leave Entitlements
a. Casual Leave
b. Sick Leave
c. Earned Leave
d. Maternity Leave
e. Study Leave
f. Hajj Leave
g. Special Leave
h. Leave Encashment
This assignment has been focused on the compensation practices of
two private banks of Bangladesh. There are some components that are
taken into consideration during pay in our country, but it varies
significantly among banks regarding pay. We have tried to focus on the
pay differences, possible reasons of using different pay components
used by the both bank in our country. Finally, we came up with
difference of compensation practices between MTB and UCBL, which
they used for their bank so that they can perform better.