Sunday, November 8, 2009

CEO salary is the matter of Parliamentry debate

In a company CEO is highly paid person that complete team which making the the profit to company multiple time.

After a one year aqgain this issues raised by the Corporate affairs minister Salman Khurshid today said the new Companies Bill, 2009, has done away with the 11 per cent cap on the remuneration of chief executive officers and directors.
A final review on the matter would be taken by the Parliamentary Standing Committee, which is vetting the provisions of the bill. At present, a company's total payment to its directors and managing agent, secretaries and treasurers or manager in any financial year can't exceed 11 per cent of the net profit.

"The proposal that has come before Parliament does not have any cap. The Parliamentary Committee will take a final review and would take a decision. But the prevailing atmosphere in the world, from the US all the way to India, is today inclined towards some restrictions. Now whether that is necessary to apply a legislation or is there some other way of achieving it is something that has to be considered," Khurshid said.

these issue will be under consideration.. as a common human view of the people realy it creats the disparity in social sector they must have to pay the best salary but it must be on the basis of the profit rather than the basic salary...

Later, Prime Minister Manmohan Singh had put to rest the controversy by saying, "Our government as such has not taken a view on this. CEO salaries are best determined by the boards of the respective companies."

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