CEOs slam sarkari salary cap splash

However,Senapaty who is also on the accounting committee of the CII,did admit that there are some cases of 8220;obnoxious compensation8221; in the industry and the debate on the issue 8220;is always most welcome8221;.

After scrutinising the Companies Bill,the Standing Committee of Parliament on Finance had recommended capping CEOs8217; salaries. Asking the Corporate Affairs Ministry to develop a 8220;rational formula8221; for managerial remunerations,it said that an 8220;overall outer ceiling on managerial remuneration may be prescribed.8221;

Assocham Secretary General D S Rawat said putting a cap on company heads8217; remuneration may come in the way of attracting talent.

8220;We strongly believe that in today8217;s global competitive environment,the market forces are the deciding factors.

Capping will be the denial to attract the best talent,8221; he said.

However,shareholders must have a say in deciding the compensation of the senior management,he said.

8220;The overall limit of fixing of the remuneration of the CEOs is already defined in the Companies Act and it should remain with the shareholders of the company,8221; said PHD Chamber Senior Vice-President Salil Bhandari.

According to the present law,the total remuneration paid to managerial personnel cannot exceed 11 per cent of net

profit.