We all know our Minister of Corporate Affairs , Mr. Salman Kursheed warned firms against paying huge salaries to top company brass and said the government would keep a watch on executive compensation.He also said that the CEO's are paid vulgar salaries.
Also in 2007, Prime Minister Manmohan Singh told a business lobby to avoid "excessive remuneration" and to "discourage conspicuous consumption," warning widening inequalities could lead to social unrest.
Do you think that there should be CAP on the CEO's Salary...?
Frankly speaking i do not accept the idea of keeping a CAP on the CEO salary. We have alraedy seen a lot of cut in few CEO in the recent slowdown.
I believe that the CEO must be the best guy in the market to run your company in the best possible manner, to get the best talent and to sustain that one needs to pay him well. Also another aspect nowadays we are having a reverse brain drain in our country, if you want the best professionals you need to compensate them well.
If the government comes with a CAP on salaries then the companies will find other ways to pay them, which would result into more on black money and will result into corruption...
I believe we must not follow the US in this as we are a developing nation and the CEO are paid rationally in our country.
The reasons adduced in favor of 'no limit' sie, are: (1) The CEOs are those who lead the organization to profitability and success. (2) The bubus in the country's bureaucracy amass wealth. (3) The human desire is insatiable.
1. The CEO's duty is to provide proper leadership and lead the organization on profitable lines. For doing his duty let him be paid reasonably high salary and benefits. But to argue that there should not be any limit for it is not acceptable. For anything under the Sun there is a limit and there has to be a limit.
2. If the politicians and the babus in bureaucracy amass disproportionate wealth, we should find out ways for punishing them. We should not have it as a model for CEOs.
3. It is true human desire is insatiable. But it should not be so. If the individual concerned is not cultured enough to control his desire, then the law of the land should do it for him.
One common observation in the yes's and no's. Middle Managers and lower has voted more for the capping of the CXO Salary and vice versa.
They are the ones who turn around the organization. They either create a fortune or ruin the fortune that is left. Most of them have proven their caliber while some have not. We point out fingers only when they are not doing well. there is absolute silence when it comes to all the contribution he has made for that organization to be.
Wishing all the CEO's and the future CEO's/CXO's to reach beyond their expectations.
I have got one simple argument that in todays prevailing world order no amount earned is great enough to satiate the dezires of human being and empirical evidence suggest that monetary benefits are the major source of motivation towards targets of course not the accomplishment of mission and objectives but then targets lead you toward the fulfillment of the mission in the long run and hence the salary of CEO should not be capped.
Secondly he being in the most authoritative position to manipulate the things in his interests if he so desires so let him accept what he values himself of to enable him to maintain his moral standards. Our bureucracy is full of glaring instances where those elite class babus amass wealth disproportionate to their income and yet no concrete action holding accountability is effectively implemented. Hence there is a need for corrective action in Govt Sector and not In the Private Sector .
I don't think there should be a CAP on the salaries of CEO's. A CEO is the most important person in a company & he needs to be compensated well. Also i consider the argument of the government to be absolutely vague that it creates social inequality & unrest. I would like to ask that how many CEO's are there in the country, a handful i guess. Remuneration should be according to the work a person does. So paying a handful of CEO's is surely not going to create a social inequality.
I don't know what is the problem with the government. Is earning more bad ?? Is being materialistic bad ?? I don't think so. They don't understand that this is in turn going to help our country progress. So what's the problem with that ?? I think such comments by our ministers are politically inspired, they just want the junta to believe that a huge social divide is being created by paying a handful of CEO's more ....... that's ridiculous. The ministers must understand that there are greater problems in front of the government and should instead concentrate upon them.
CEO is one of he main reasons of running the organisations. They have suffered a lot in this recent slowdown so I don't think they should be given CAP rather, its better if they apply HAT on them. Because, as Japan said, if CAP is applied on them, companies will pay them in other ways resulting in black money.
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