The Director of the Indian Institute of Management (IIM) Rohtak, Dheeraj Sharma, has found himself at the center of controversy regarding a substantial variable pay package he received. The Ministry of Education (MoE) has intervened, seeking an explanation from the institution after its Internal Audit Wing (IAW) flagged concerns about the payment.
According to reports, the IAW raised objections regarding the ₹ 3.2 crore variable pay paid to Sharma over a period of three years (2018-19, 2019-20, and 2020-21). The IAW’s probe found that the amount paid to Sharma, who is already under scrutiny for alleged misrepresentation of his educational qualifications, was significantly higher than permissible. The report also criticized the procedure used for making the variable pay disbursement as ‘void’.
The IAW report highlighted that the variable pay exceeded 200% of the Director’s total emoluments, which is significantly higher than any standard practice allowing variable pay as a percentage of an individual’s total earnings. The MoE’s intervention stems from complaints received by President Droupadi Murmu, in her capacity as visitor of all IIMs, in 2023. These complaints, which were forwarded to the government, also included allegations of irregular issuance of mobile phones to faculty and suspicions of financial irregularities.
In response to the findings, the MoE has directed IIM Rohtak to take immediate action, identify those involved in the decision, and outline their plans to limit the director’s future variable pay. The MoE has also demanded the institute’s strategy to recover the excess amount already paid.
However, IIM Rohtak has defended the variable pay to Sharma, claiming it was made in accordance with the IIM Act and approved by the board with unanimous consent from all attendees. The institute also denied any inquiry by the MoE specifically regarding Sharma’s variable pay. This ongoing situation highlights concerns regarding financial transparency and accountability within prestigious educational institutions like IIM Rohtak, raising questions about the governance and practices employed in determining variable pay packages for top management.
