Monday, May 27, 2013

Skyrocketing India CEO salaries under scanner...

A decision by India's richest man to forgo millions of dollars in salary has brought the sensitive issue of exorbitant CEO pay back to the realm of public debate.

Earlier this month shareholders were told Mukesh Ambani - the 56-year-old billionaire chairman of Reliance Industries (RIL) - had chosen to voluntarily waive an annual pay hike of $36m. He had refused similar increases four times in the past, although the majority of shareholders had approved it.

Reliance Industries said in a statement: "The decision to freeze his own salary reflects his desire to continue to set a personal example for moderation in managerial compensation levels."

Ambani's current salary is about $1.5m per month, and his overall fortune is estimated at $21.5bn from his controlling stakes in petrochemicals, oil and gas, textiles, retail and telecom companies. He is currently ranked 22nd on the Forbes list of world billionaires.

Disproportionately high senior management salaries continue to be a sensitive issue for a large chunk of listed companies in India. A recent survey by global human resource outsourcing firm Aon Hewitt shows that average wage disparity between India's CEOs and entry-level employees is the highest in the world. Full story...

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