New Delhi: 150 executives of top corporate houses participated in an executive committee meeting held by Assocham in Mumbai on 31 May, calling for absolute non intervention of policy makers on the issue of CEO’s salaries in the private sector and it was felt that their salaries and perks would be decided by market forces.
The meeting in which senior representatives of corporate sector took part included Tata’s, Birla’s, Reliance, Videocon, Jindal’s, Nicolas Piramal, DLF, ONGC, HPCL, Hindustan Lever, Power Finance Corporation Limited and BPCL. They felt that the issue of CEO’s salary is totally private in nature and depends on the individual company or industrial house who can nurture their corporate plans as they deem fit.
Members also felt that retention of CEOs at crucial times such as now could be possible only with higher package as it is the CEO who executes and implements the corporate strategy of any industrial house.
Therefore, suggesting a cap and ceiling on CEO perks and packages would be impractical. All participants felt that vulgar and ostentatious display of wealth in any form should be restricted and if necessary banned in public interest.
Senior business executives also echoed apprehensions that better corporate governance should be ensured by introducing transparency in the books of accounts, balance sheets and other legal documents of corporates without bringing in the issue of CEO perks and salary under any public scrutiny.