If you think the government officer is playing catch-up with the corporate executive, think again.
While bureaucrats may look forward to higher pay packets come winter, their counterparts in terms of education, experience and decision-making roles in the private sector have run up way ahead, thanks to the arrival of multinationals in a globalised world where talent is a hot commodity. It would need much more than the recommendations of the Sixth Pay Commission to make two peer groups somewhat proximate to each other.
“According to our estimates, there are 75-100 CEOs in India who are earning about a million dollars in compensation annually,” says K Sudarshan of EMA Partners, a global CEO search firm.
Executive search industry sources said that the annual salary of the chief executive of a mid to large size Indian company would be most certainly be upwards of Rs 1 crore.
Compared to this the Cabinet Secretary, India’s top bureaucrat would earn Rs 90,000 per month as basic salary in the proposed new structure – in annual terms that would mean just under Rs. 11 lakh, or just over one-tenth of the homegrown CEO. IT companies are further ahead. “The CEO of a top information technology company would be close to Rs 3 crore,” a top executive of a leading head-hunting firm said.
Roughly speaking, a senior vice-president in a leading private company could be compared with a joint secretary in the Centre, an executive vice-president to an additional secretary, a chief operating officer to a secretary and a chief executive officer to the cabinet secretary, if hierarchical pyramids are anything to go by.