Prime Minister Manmohan Singh on Wednesday stressed upon the need for corporate accountability in public sector units (PSUs).
The government has been encouraging PSUs to develop robust and transparent performance management systems to strengthen corporate governance.
“We are one of the very few countries in the world that have implemented a mandatory code of corporate governance for public sector enterprises,” Singh said in his speech at a SCOPE awards function in the Capital.
After the economic slowdown and Satyam scandal, senior management and directors of private sector companies have been taking steps towards implementing better accountability.
“We have encouraged our central public enterprises to adopt a robust and transparent performance management system. Incentivised and revised salaries for executives and workmen, along with innovative measures such as performance-related pay will result in sound practices for better corporate governance, which is of critical importance in today’s increasing competitive environment,” Singh said.
Stressing that a vibrant private sector need not deprive PSUs of best talent, the Prime Minister said the government has put in place an improved system of remuneration. “We must ensure proper selection planning in our companies…. be able to recruit bright young men and women into public sector jobs and must have the ability to retail them there.”