Agencies Posted online: Friday, May 25, 2007 at 1514 hours IST Updated: Saturday, May 26, 2007 at 1159 hours IST
New Delhi, May 25: India Inc is divided over Prime Minister Manmohan Singh's advise to limit the CEOs' salaries, with CII and ASSOCHAM stating the remuneration should be left to companies themselves while FICCI said it would consider the issue.
"These things cannot be legislated. Shortage of skills in key areas at the top level is a serious and genuine problem specifically in the services industry, which is facing pressure of high salaries," the new president of the Confederation of Indian Industry, Sunil Mittal said.
He, however, said that there should be a co-relation between the size of a company and the salaries to their employees.
Prime Minister in his address to the CII had said on Thursday that the industry should ‘resist excessive remuneration to promoters and senior executives and discourage conspicuous consumption’.
ASSOCHAM President V N Dhoot also toed the CII line and said that the salary packages should be decided by the industrial houses themselves. "It should be based on the competence level of the people being hired".
However, a code can be developed on the salary structure of CEOs after a consensus.
FICCI, however, echoed a different sentiment and seemed to be agreeing with the Prime Minister.
"We will keep in mind his (PM) advice on structuring executive salaries in the context of the overall national priorities," FICCI President Habil Khorakiwala said.
However, the three chambers were in complete agreement with the Prime Minister to check the ostentatious expenditure and vulgar display of wealth by the rich and famous.
CII Chief said Prime Minister's concern was in view of the wealth inequality in the country and ‘in-your’ face spending that hurts people.
"It is completely uncalled for and would lead to social unrest," Dhoot said. Khorakiwala said a culture of savings and investment should be promoted and conspicuous consumption be shunned.
New Delhi, May 25: India Inc is divided over Prime Minister Manmohan Singh's advise to limit the CEOs' salaries, with CII and ASSOCHAM stating the remuneration should be left to companies themselves while FICCI said it would consider the issue.
