Govt. wants companies to disclose their top managers’ salaries

Govt. wants companies to disclose their top managers’ salariesThe Government wants the companies to reveal the pay packages given to promoters and chief executive officers (CEOs), and the median salaries of their employees.

Existing norms specify that not more than five per cent of a company's net profit can be given to any single director, but the increasing perception is that Indian companies are distributing gigantic pay packages to their top managers.

In a recent interview, Corporate Affairs Minister Sachin Pilot said, "Publicly, there is so much debate about the companies spending large amounts of money towards remuneration for their top management personnel."

Speaking on the topic, he explained that huge packages that Indian companies are giving to their top managers might be their well-deserved money but the perception about the divide between the rich and the poor was expanding.

When asked about the possibility of implementing tougher steps on huge pay packages to top managements, he said that the government must keep liberal approach but wanted to make it better and competitive.

Mr. Pilot stressed that the Ministry of Corporate Affairs would have to play the role of an enabler.