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Created by : Mehul Bhesaniya, CEO/ Director  | 04 23 2010 09:54:54 +0000
Activity:  318 views;  last activity : 07 06 2010 20:18:09 +0000
 
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A nice question from a student.

--  CEOs of which country, before recesion or at present ? Private Cos, MNCs, Indian PSUs or Indian Corporate House ... ? What is "too much" - how do we compare and what is the yard-stick ?

Payments towards CEOs and other main functioneries are generally decided by the Board. Known fact that CEOs influence the decession.

It is now known to all that CEOs, pre-recession in some Developed countries were being paid abnormal salary, bonus and parks etc. Newly elected President of the USA, Mr Obama have had expressed his surprise over this issue .. he was even amazed to see that CEOs of some ill-fated cos, after recession,  in his country had hired chartered planes to visit Washinton to receive "Bail-out Fund" ... !!

In fine, there is no yard-stick. General staff are not even interested to know what CEOs are paid ... now they are here ... tomorow may leave.


By ASOKE KUSARI, Domestic Private Banking-Executive/Manager, A large leading PSU Bank - India  04 24 2010 14:18:48 +0000
 
Top Argument
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No CEO's deserve it....

CEO's play a vital role in the development of an organization and also help in the growth of the economy. A company will not blindly pay a person a hug amount, he gives his full effort to make it as a profitable company. He is not paid because he has many degree, but he paid for his experience and knowledge.

And I don't think paying a CEO more is something wrong. It is the companies wish how much to pay a CEO, if they has more profit it can......


By Janaki Ram, HR Executive, Lead Consultancy  04 24 2010 09:43:18 +0000
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As per my knowledge CEO's should be paid high than CTO , CPO , CFO ,COO but donno why others are paid higher than CEOs in few companies ? Let us hear more on this from other active participients. Thanks , Dev .
By Dev Reddy, Manager -Business Development, Relevante Consulting India Pvt Ltd  | 04 24 2010 12:45:39 +0000
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Yes,

Opinion depends on whether you are a well paid CEO or no, :-).


By M. Prabhakar Rao, Author of "Mayhem Of The Miserables!", http://www.smashwords.com/books/view/52075  | 04 24 2010 12:18:57 +0000
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Many potential causes of overpayment have been identified: CEOs with too much power, inattentive boards of directors, conflicts of interest by compensation consultants, the use of stock options--the list goes on. Some studies show the average CEO was paid $10 million to $15 million in 2005. This includes their salary, bonus, stock option gains, stock grants, and various executive benefits and perquisites.
By Mehul Bhesaniya, CEO/ Director  | 04 23 2010 09:54:54 +0000
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Depends on company.. I think companies can take better decision than us. Nobody in organization are paid too much. And we don't make comparison between Indian co.s and developed countries cos.. factors matter.


By Vipin Bhasin, Private Equity/Hedge Fund/VC-Manager, Indian Investment Co.  | 04 25 2010 12:21:18 +0000
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Yes I agree with you Mr.Janaki Ram.

It is between the organization & the CEO and how they negotiate with each other. When the CEO is deserved for that it is ok. The CEOs are highly paid to bring results to the organizations. It is like sharing from the profits of the company. On the contrary, in case the CEOs are failed to bring the results required, they are shown the doors. Hence a CEO job is highly a risky one. all the CEOa are risk bearers.  


By NATTERAJA R. ARIKRISHNAN, GM-Projects, Bentec Electricals & Electronics Pvt. Ltd  | 04 25 2010 11:35:19 +0000
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While it is true some CEOs have been (and probably are still being) overpaid, one cannot ignore their contribution to the company's overall growth, public image, financial position, market value etc. Considering the burden of such huge responsibilities, a hefty pay package for them should not come as a surprise. Rather it should be looked upon as a just reward/compensation for the knowledge, experience, business acumen, and skills that he brought with him to contribute to the grwoth of the company.


By Prosenjit Purkait, Apparel/Garment Merchandising Manager, Fabstract Clothing India Pvt. Ltd.  | 04 24 2010 12:57:17 +0000
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What you sow that you reap. The path they need to travel, the hurdle to cross-over, the muscles to tackle & the mental tension need to face with board of directors, the resources one is vested with & the output target set out ; all decides the package.


By KALIYAMOORTHY , Oil & Gas Area Coordinator, Undisclosed  | 04 24 2010 12:52:39 +0000
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CEO's are paid what is justified....there are exceptions but the major part of the people who are working as CEo's have a high potential to ramp the financial graph of the company through higher profits and credibility of the company in Market.


By Saleel Deshpande, Sr.Architectural Co-ordinator, Dar Al-Handasah(Shair and Partners)  | 04 24 2010 11:48:39 +0000
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Support the Knowledge or CEO. Pay him for the development  of the organization. The pay packet is judged by performance. 


By Mohammad Bakhsh, Project Leader/Managing Consultant, Freelancer  | 04 24 2010 11:43:39 +0000
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Problem is in the capacity to pay. Also the deliverance mechanisms. I think that instead of a salary they can be paid some percentage of the Profit after Interest, Tax and depreciation: - the assignable and deployable funds. - Remenber the director of Titanic?

That may give him some motivation


By V. Srinivas, Freelancer, Information Technology  | 04 24 2010 11:20:21 +0000
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U GET WHAT U DESERVE...

In this cut throat & calculative Business World... WHO WILL PAY MORE, IF U DONT DESERVE IT ?

A CEO commands the business ship, navigates it thru rough waters, moves ahead in the right direction... and while He is doing all this, He is also carrying the weight of the entire Team alongwith.

Anyone from the Team makes a mistake, the CEO is responsible.

WHY SHOULD HE, NOT BE PAID WELL ?

Happy Debating Friends !   


By Naushad H.L., Creative Director, MAD COMMUNICATION  | 04 24 2010 11:07:45 +0000
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No, CEO's are paid the value THEY are able to negotiate, how they will be able to secure a proper profit, or a business strategy - how do you put a value on expectations? you make a guess, see what the CEO have done in the past and hope he/she can do the same for your company. So a CEO's salary is not too high, as the salary will reflect on the company's market value, how well the company is doing, and how well the company have done under the CEO's management.

Further a CEO's salary is highly psychological. The higher salary, the higher expectations from board and investors and the faster you as an employee have to work, so make the CEO's sales and production target.


By Ronni Marker, CEO/MD/Director, Avian Group Pte Ltd  | 04 24 2010 10:35:25 +0000
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CEO's are paid for their intelligence and work experience. They have the capacity to handle any kind of situation. So they have to be paid more.


By Arihant Prasad.D., Associate Consultant, ....  | 04 24 2010 10:25:53 +0000
 
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