12/26/12

Companies must disclose CEOs' pay in perspective of staff salaries: Govt - The Times of India
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RELAT ED KEYWORDS: Sachin Pilot | Indian CEOs' Pay Package | India Inc | Corporate Affairs Ministry | CEO's Salary Vs Staff's Salary | CEO Salaries In India

Companies must disclose CEOs' pay in perspective of staff salaries: Govt

PTI | Dec 26, 2012, 06.12PM IST

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NEW DELHI: Amid a growing perception about India Inc doling out huge pay packages to the top management, the government wants the companies to disclose the remuneration paid to promoters and CEOs in perspective of their median staff salary. "Publicly, there is so much debate about the companies spending large amounts of money towards remuneration for their top management personnel. "It may be their hard-earned money. But the perception about the rich and the poor divide is getting bigger and bigger. That perception correction has to take place," corporate affairs minister Sachin Pilot told PTI in an interview here.
Sach i n Pi l ot sai d th at th e com pan i es "m u st report sal ari es th at prom oters an d ch i efs get, pl u s th e m edi an sal ary of th ei r em pl oy ees" at th e en d of th e y ear.

The minister further said that there are multiple number of cases that he knew of "where perhaps people feel that the (general) employees are not getting enough money." To correct this perception, Pilot said, the companies "must report salaries that promoters and chiefs get, plus the median salary of their employees" at the end of the year. The regulations put a cap on remuneration of top management, as per which not more than five per cent of the net profit can be given to one single director of a company. "While we have maintained this cap, changes are being made in the disclosures to be made at the end of the year," he added.
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"The message that we want to give to the corporates is that please disclose the median salary of employees so that we get an idea about the framework of the payments that are being made by the companies," Pilot said. Asked whether the ministry would consider tougher measures for the companies doling out huge salaries to their top management, the minister said that he was in favour of a disclosure-based regime, so that the investors can take informed decisions in this regard. "What we want to tell the companies is that disclose the salaries for top management, but you also disclose how much you pay to your employees.

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"I think the government must keep a hands off approach. Our idea is to create a regulatory framework, give them (investors) all the inputs they need without creating a fear psychosis," he said. "We have to play the role of an enabler. The ministry of corporate affairs should be an enabling ministry and we should not be there to make it more difficult, as it is already difficult for investors as our ranking (in ease of doing business) is very low. "We want to make it better, easier, competitive. Not just for me or the company but for the millions who get jobs and opportunities. If companies are not opened, how can we create jobs? Government cannot create that many jobs and most jobs come from the private sector. We can't ignore that fact," he said.

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Mahesh Ved (Mumbai) 208 Follow ers 2 mins ago Platinum : 37.2K Agree (0) Disagree (0) Recommend (0) Offensive
7 1 6

IS SUCH A REGULATION REQUIRED?

him anshu goel (Gurgaon) 4 Follow ers 8 mins ago Silver: 1241

Yeh bhi ker lo.... Kya karoge?

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ram anan50 (Bangalore) 6 Follow ers 9 mins ago Silver: 1440

timesofindia.indiatimes.com/business/india-business//17769866.cms

No body is going to disclose. It will taken in Vouchers.

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Companies must disclose CEOs' pay in perspective of staff salaries: Govt - The Times of India
No body is going to disclose. It will taken in Vouchers.
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Mahesh Ved (Mumbai) replies to ram anan50 208 Follow ers 3 mins ago Platinum : 37.2K

RIGHT.

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brij (mumbai) 10 mins ago

So an entrepreneur who risks his life on a business is expected to get the (near) same salary of employees? Employees can leave a company for a better job, but an entrepreneur will die if the company fails. Now it makes sense to be an employee than an entrepreneur. But then, where will the employment come from if there are no entrepreneurs? Good job Mr, Pilot, your incarnation as a politician is complete - even if it is inherited!

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Sunil (mumbai) 2 Follow ers 18 mins ago Silver: 1047

How is one going to account for the non-disclosures of the politicians and bureaucrats

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Am ol B. Bhatt (Mumbai) 14 Follow ers 21 mins ago Silver: 1997

Ek Sachin Reitrie huwa to dusare ne yaha baji saru ki he....dekhte he kitna khelta he...start to achi kiya he.

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satish (us) 2 Follow ers 22 mins ago Silver: 1152

What article of the constitution of India has given the union govt such an authority to interfere in private business. Why does the govt wants to know how much a company pays to its management or its general employees. It is none of govt's business to know or interfere in how a private company runs its business unless there is a crime or fraud . Socialism and wealth distribution has never worked any where in the world and it is certainly not working in North Korea. This is clearviolation of the fundamental rights granted by the constitution to all the citizens of india by the union govt.

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J Krishnan (Dubai) 23 mins ago

Very good move. CEOs live like Gods. But for us to have a complete picture, also include the CTC (indian people) of ministers.

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Abraham (dubai) 12 Follow ers 26 mins ago Gold: 6025

The more the restrictions on corporates, the more the corruption and illegal transactions. The tax laws in India need to revisited so that taxation is not a punishment. Almost all big importers and exporters in India route their transactions thru dummy companies in Freezones around the world and most profit are booked abroad. Why? Corporates and tax payers should be encouraged rather than discouraged.

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Thom as Kuruvilla (Mumbai) 13 Follow ers 26 mins ago Silver: 2542

How is this measure going to help? What about the accountability of the elected representatives? Its all just a show.

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binni (pune) 27 mins ago

The idea is to estimate how much government should get from Income tax.. then formulate how much they CAN get by varying certain slabs etc.... earlier this government had said that AADHAAR will not be mandatory... now it is saying DCT is based on aadhaar... they is no credibility left in these guys.. if they say A..then interpret it as Z...

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Nakul Sw am y (Ahmedabad) 3 Follow ers 38 mins ago Silver: 1738

This information already gets shared!! How do you think Forbes & Various publications make the various kinds of TOP 10 lists??? Mr. Pilot, The corporate world already is well-regulated, please focus your energy to create transparency in the Working of the government!! A simple question of Sonia Gandhi's Foreign trips remains unanswered for infinite amount of time!!! Charity starts at home! So before you go out handing out SOP's (you guys seem to have started liking this word) for India Inc., please set your house in order!!!

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dheeraj (ggn) replies to Nakul Sw am y 24 mins ago

indian banks share all the amounts to street agents illegally to chase for investments. Indian privacy laws are pathetic. Banking laws are pathetic

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Am it Agraw al (Mumbai) 35 Follow ers 38 mins ago Gold: 8584

good move

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m rig (chennai) 39 mins ago

With one stroke Mr. Sachin has ensured to punish productivity, entrepreneurship, leadership - which has contributed to India's growth. And reward politicians, government and overzealous citizens. Income of big corporate CEOs is paltry in relation to the national income. Capping their salaries is good publicity, very bad economics - you kill the incentive to perform and you kill growth. Mr. Sachin, your thinking is the same as your predecessors in Congress 40/50 yrs back. When you cannot increase income of the poor you make life difficult for people who want to work hard, create employment - remember licence Raj? You know foolish Indians will lap this up, poor will remain where they are, corporates will pay more bribes to politicians, and the story goes on forever. Stop playing games, it is getting frustrating as you can see around - or Narendra Modi might just make it!

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Dr. M. K. Dahal (Kathmandu) 17 Follow ers 41 mins ago Silver: 3611

Transparency leads to success of corporate governance.

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justdoit2003 (USA) 6 Follow ers 52 mins ago Silver: 2613

You are creating accountability for everyone except the elected representatives. Why dont you focus on that because more than these CEO's, these MPs and MLA, the so-called kings of this country, have more powers, funds, responsibility (?). Also, focus on the govt owned Navratna where the management has been eating up big share of earnings in terms of salaries and perks without producing any potential value. Start with yourself first!

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pappu singh (mumbai) 57 Follow ers 55 mins ago Gold: 14K

timesofindia.indiatimes.com/business/india-business//17769866.cms

sonia must disclose details of her foreign visits...

Agree (7)

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Companies must disclose CEOs' pay in perspective of staff salaries: Govt - The Times of India
sonia must disclose details of her foreign visits...
Agree (7) Disagree (0) Recommend (4) Offensive

poor69m an (Mumbai) replies to pappu singh 27 mins ago

You must disclose your foreign and Indian visits....

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Mr India (Bangalore) 1 Follow er 56 mins ago Silver: 630

yup i agree with you but then if they ask our goverment to set a example and more transparent by Disclosing Black Money. it's not much to ask,what our goverment say?

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Sam ir (Ooty) 8 Follow ers 57 mins ago Silver: 3776

I dont know why the Government has a problem if a person is being paid handsomely for preforming well. Lets take it that a private company will not pay good salaries to laggards (unlike the government) and so we can leave it to the shareholders to sort it out among themselves.

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GSN Murthy (Rajahmundy) 17 Follow ers 57 mins ago Gold: 5486

In many sompanies the remuneration to top management is shown in the annual report . Is it that Mr Pilot is asking more information to be published than this or si,ilar information for all companies ? In any case it is a unpleasant ( to corporates) but a small step to habituate transperency atleast on paper .

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Priya Soundarya (Hubli) 57 mins ago

In India except for a few companies like the TATAs or HLL, nowhere you will find the top management selected on performance, merit & experience. This is mostly true in case of Mutual Fund Industry where the Fund Manager of a non-performing fund takes home a huge salary irrespective of the Fund Performance. In India the op management is & are mostly appointed thru cartels hence the result is there 95% Indian Companies leave alone a few like Glenmark or ITC are bereft of any real innovation in their fields.

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Shariq (Mumbai) 66 Follow ers 58 mins ago Gold: 15.9K

This is very much required specially in companies where the management is very heavily paid and employees are being treated as slaves

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Saurabh Nagshain (Hyderabad) 14 Follow ers 1 hr ago Silver: 3508

A welcome step...

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Sudarshan Gupta (VD) 9 Follow ers 1 hr ago Silver: 1871

Wud that really make any difference??? Only the employee wud feel more frustrated by getting to knw the high salaries of CEO and other mgmt level employees...

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Mahesh Ved (Mumbai) replies to Sudarshan Gupta 208 Follow ers

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Companies must disclose CEOs' pay in perspective of staff salaries: Govt - The Times of India
Platinum : 37.2K

NOT PRACTICAL.

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Punekar (Pune) 1 hr ago

Sachin Pilot is a good politician. Support to Sachin for PM post from Congress insted of Rahul Gadhi.

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