Institutional EYE

Commentary on Corporate Governance Issues

CEO remuneration: Competition to pay more

April 8, 2019

 Investors are getting increasingly concerned with CEO remuneration levels in Corporate India. A recent IiAS study reveals that median CEO pay of BSE 500 companies has outpaced corporate performance over the past five years. Investors are voicing their opinions through their votes – it is time boards listen to this outcry.

 

Indian companies are not of the same size as the S&P 500 constituents, but they seem to be emulating global pay standards. While we don’t have a Nikesh Arora with an annual remuneration of over USD 100 million, we do have remuneration levels that stand out. A Wall Street Journal study showed that S&P 500 company CEOs get paid about USD 1 million a month – for India, that number for BSE 500 companies is around Rs.5.7mn a month (not including remuneration of CEOs of public sector enterprises)

 

A modified version of this article was published on https://www.moneycontrol.com, which article can be accessed here: https://bit.ly/2WQXpdM

 

To read the full report, click here.

 

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