Now, Khurshid wants Indian CEOs to lead simple life
Corporate Affairs Minister Salman Khurshid had on Sunday favoured trimming pay packets of Indian CEOs. Top salary earners | Cos which offer Rs 1 cr plus salaries
By PTI |
NEW DELHI: Corporate Affairs Minister Salman Khurshid, who yesterday favoured trimming pay packets of India Inc CEOs, today earnestly advised them to lead a simple life, saying "display of affluence is unacceptable".
"A year ago, the Prime Minister indicated that we in this country (are) grappling with enormous issues like poverty etc... We follow the footsteps of Mahatma Gandhi and trying to lead our life with much simplicity," he told reporters on the sidelines of Central Wakf Council meeting here.
Khurshid, who is also Minister for Minority Affairs, said: "Display of affluence is unacceptable... I am not saying it is a rigid framework under which all of us should fall. It is an aspirational matter".
As far as CEOs' salaries are concerned, he said even today there exists a cap, but it should be up to the shareholders to decide what the company heads should be paid.
He had yesterday advised companies against doling out "vulgar" salaries to their respective heads.
At the same time, he said today: "It is simply impossible to say that we will shut our eyes and let anybody do what they please but at the same I cannot say we will bring a regime of control."
He insisted that while the government is not in favour of a control, there should be some regulation. "I am not for control. I am for regulation," Khurshid said.
The Minister further said: "Our job is to bring this into light (austerity). If somebody takes this as example and support this view, we welcome such measures."
Even Americans are trying to resolve the issue of CEOs' high salary, he said, adding "the President of America has used the word greed. It is not an easy word. It is a tough word because what happened in US led to worldwide recession.
"They are trying to find their solution. We are trying to find our solution. Our solution is that we can solve issue by example, we can solve issue by dialogue," he said.
On the issue of vulgar salaries, Khurshid clarified, "Somebody asked me what do you think about vulgar salaries ... should I say I like them? I have to say I can't like them. Nobody in this country can support anything which is vulgar."
The matter of regulating CEOs' salaries, the Minister said, would ultimately be looked after by the Parliamentary Standing Committee, which is looking into the Companies Bill 2009 that was tabled by the government earlier.
The new bill seeks to replace the existing companies legislation, which was enacted in 1956.
"A year ago, the Prime Minister indicated that we in this country (are) grappling with enormous issues like poverty etc... We follow the footsteps of Mahatma Gandhi and trying to lead our life with much simplicity," he told reporters on the sidelines of Central Wakf Council meeting here.
Khurshid, who is also Minister for Minority Affairs, said: "Display of affluence is unacceptable... I am not saying it is a rigid framework under which all of us should fall. It is an aspirational matter".
As far as CEOs' salaries are concerned, he said even today there exists a cap, but it should be up to the shareholders to decide what the company heads should be paid.
He had yesterday advised companies against doling out "vulgar" salaries to their respective heads.
At the same time, he said today: "It is simply impossible to say that we will shut our eyes and let anybody do what they please but at the same I cannot say we will bring a regime of control."
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He insisted that while the government is not in favour of a control, there should be some regulation. "I am not for control. I am for regulation," Khurshid said.
The Minister further said: "Our job is to bring this into light (austerity). If somebody takes this as example and support this view, we welcome such measures."
Even Americans are trying to resolve the issue of CEOs' high salary, he said, adding "the President of America has used the word greed. It is not an easy word. It is a tough word because what happened in US led to worldwide recession.
"They are trying to find their solution. We are trying to find our solution. Our solution is that we can solve issue by example, we can solve issue by dialogue," he said.
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On the issue of vulgar salaries, Khurshid clarified, "Somebody asked me what do you think about vulgar salaries ... should I say I like them? I have to say I can't like them. Nobody in this country can support anything which is vulgar."
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The matter of regulating CEOs' salaries, the Minister said, would ultimately be looked after by the Parliamentary Standing Committee, which is looking into the Companies Bill 2009 that was tabled by the government earlier.
The new bill seeks to replace the existing companies legislation, which was enacted in 1956.
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