Amid the growing perception that India Inc is doling out huge pay packages to top managers, the government wants it to disclose promoters and CEOs’ remunerations in perspective of their median staff salary.
Corporate affairs minister Sachin Pilot said in an interview that although it could be their (promoters and CEOs) hard earned money, companies “must report salaries that promoters and chiefs get, plus the median salary of their employees”.
Norms stipulate that not more than 5% of the net profit of a company can be given to any single director. “While we have maintained this cap, changes are being made in the disclosure norms at the end of the year,” he said.
Asked whether the ministry would consider tougher steps on huge salaries to top managements, Pilot said “We want to make it better, easier and competitive... I think the government must keep a hands-off approach.”
Allaying fears of excessive government control, he said the idea was to give the investor all the inputs they needed “without creating a fear psychosis”.