Excessive executive pay must be held in check for India Inc’s sake
- Companies aiming for equitable and sustainable business growth should not try to game the rules on remuneration. The country’s cap on what publicly held businesses can pay should not be violated.
Excessive executive remuneration that is not linked with performance and does not satisfy transparency norms, disclosure rules and tenets of corporate governance is a problem prevalent in some sections of corporate India. While most companies do adhere to company laws, there are a few where a widening chasm between top pay cheques and median salaries causes tension, heartburn and low productivity, apart from being unsustainable and likely to invite legal challenges.