As i read the comments made by fellow friends on rediff i see that they are not happy to see the rising salaries of the CEO and start comparing it to the the salary drawn by other member of the companies.It is true that in some cases the high salaries are not justified for CEO's.I have seen the CEO's drawing a fat cheque and leaving the organisation after 2 years without adding any growth revenue to the organisation.Yes the salary should be high as per the performance level.The CEO should only be paid a high renumeration based on how he performs in teh first year .If he can bring bussiness a fat salary can be paid and if he does not then he should be paid probably 15 to 20 times salary drawn by the lowest salary in the company.Indian CEO's are complacent now a days.They know that even if they can survive 2-3 years in a company they can be rest assured of a good package.After all if an MNC asks him to leave they also have to pay him a huge sum as per the contract.One will hardly see a really good CEO in the indian Scenario.This is only one part of the argument .However being an optimistic I believe we shall also have CEO's like Jack Welch in most of the companies who can grow the companies manyfolds
If I start a company and become the CEO of it will I get paid similar compensation? If not can I sue the employer or just quit and apply for another job showing this experience? If none of these can happen, then it's unfair! All CEOs have to be paid at par and I cant be an exception whether it be my company or others..it's hard work u know..! :P
In all these companies, how much salary do the lower end employees like drivers, cleaners, peon, gatekeepers, security guard gets???? Very little. So please show the complete side of the story. In Central government service, a driver gets 9000 rupees in hand plus house, more then many engineers working in the above mentioned companies.For lower jobs, Governemnt jobs will always be the best
RE:RE:other side of the story
by INDIAN on Aug 06, 2007 07:13 AM Permalink
Hemal Patel is getting from corporate just to say shut up in this public blog.
RE:other side of the story
by INDIAN on Aug 06, 2007 07:11 AM Permalink
It is true many of these companies pay very less to the real work force like engineers. Beginners generally get less then 10000 rs. This is like Status. The guys those who are getting in crores are not much as intellegent as many of there lower executives. Bot earning 100 times more. Now all fresh MBAs are dreaming the same, but very few of them will break this ice. Most of them will either sit in BPOs or carry the sales executive bags.
I did not finish..:-) One more thing I would like to tell is Indians don't have faith in their government as the Americans or other developed countries have. America's people knows that their government is going to do everything to maintain inflation less than 5% for the next 20 yrs then why should they worry. In India government is like a wack-a-mole. Indian people believes that anything can happen to the government anytime so why not earn and save as much as possible today in case a disaster happens tomorrow.
RE:Perspective - 2
by Hemal Patel on Aug 06, 2007 05:31 AM Permalink
you are just assuming lot of things, its does not look like you have any understanding of corporate world. better shut up
I believe that India has the same framework of Corporate Governance that developed countries have. Then why do you think that India has not been able to be a developed country in the past 50 yrs of independence. My view: With all the good frameworks, top and mid-level managers have not been able to get the best quality output from their sub-ordinates. There are few exceptions like TATA, Ambani Group, etc. So what could be the problem 1. I believe that there has been incapable board of directors in all fields of life, profit, non-profit, school system, private companies, public companies, everywhere. 2. Top managers(Executives) had no training to create that enthusiasm in sub-ordinates to get the best job. 3. Corporate law is heavily screwed and has never been amended so executives almost spent all their time hitting the walls (government) who wanted money from under the table.
And the list goes on and on....
But the good news is India has now signed the WTO treaty and so logically it has to abide by the International business law and that means no bribing.
So going back to the issue, if the current CEOs are getting the job done with great quality and creativity then they have the right to demand the salary they feel logical. It is upto the board of directors (Corporate Governance issue) to approve such salary or not.
One more thing I would like to tell is Indians don't have faith in their government as the Americans or other developed countries have. Americ
Salaries of C.E.O's are industry specific.No doubt, high profit margin industry C.E.O's have fat packages and high volatility. If any one can give some estimates of C.E.O's salary in Healthcare industry i.e- Hospital ?
RE:Industry specific packages....Hospital C.E.O Salary ?
by Bong Lives on May 02, 2007 08:25 PM Permalink
Bharat,
That depends on the type of hospital, if it is a five six seven star hospital treating patients with green bucks then the CEO salaries would be comparable.
RE:CEO's Salary -- Shining India
by INDIAN on Aug 06, 2007 07:17 AM Permalink
They dont desreve, Just matter of chance that they are at the right place at right time. Id doesnt show that only top executives are running the corporate, it always middle management, which populaize the product in market and make big gains for company.
While CEOs or who ever earn money a lot, they should think of poor puys who struggle to eke out a life. Everyone should contribute according to their means (say 10% or even 5%) to help education and health for children who are our future.
RE:Fat salaries
by Ramesh on May 02, 2007 05:28 AM Permalink
People with FAT SKILLS earn FAT salaries....That is what a market economy is all about. The culture of giving back to the community has yet to catch up in India.
RE:Fat salaries
by uu on May 02, 2007 08:27 AM Permalink
How about getting the Bollywooders to share that with you? They make 40-50 crores annually to shake a leg or show cleavage!
RE:Fat salaries
by vikash singh on May 02, 2007 02:38 PM Permalink
hey u moron....before comparing u shld remember that these guys are having different profiles WHICH ARE NOT GLAMOROUS IN NATURE...
RE:Fat salaries
by Vikas Vadgama on May 04, 2007 04:47 PM Permalink
Doesn't matter Mr.Vikash Singh. The point Mr. Ramesh raised is giving back to society. It applies to people from all industries. During the tsunami, we witnessed so many donations coming from foreign people but what do our bollywood do? They just played a charity cricket match. But it was all common man's money who booked tickets to watch the match. The actors didn't pay much from their pocket. Even Sachin Tendulkar or Rahul Dravid didn't pay anything whereas Michael Schumacher donated $10 million. We read of Mr.Warren Buffet chariting 85% of his wealth. Can any Indian take that decision?
