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Minister of State for Corporate Affairs Salman Khurshid has mentioned that high corporate salaries are neither ‘dogmatic’ nor ideological and should be left with the shareholders.
“We do believe in essential freedom in a democracy. The ultimate decision on managerial remuneration should rest with the shareholders,” said Khurshid at a conference on the Company Bill 2009 in New Delhi on Tuesday.
“The government is aware that hiring top minds to run a company will come at a price, but that should be objectively and not subjectively arrived at’, said Khurshid while addressing the conference, organised by the Federation of Indian Chambers of Commerce and Industry (FICCI).
“Even so, if some limits have to be placed, it is you (the corporate sector) who would have to tell us how.”
He mentioned that India has “to go beyond affirmative action” with respect to social responsibility.
“These issues need to be debated threadbare for their possible incorporation in the Companies Bill 2009, which has been tabled in the Lok Sabha and is now being vetted by the Standing Committee of Parliament,” he added.
