No move to curb CEO pay: PM

Prime Minister Manmohan Singh on Sunday ruled out any move to restrict remuneration of CEOs saying it was best left to the boards of companies.

Prime Minister Manmohan Singh on Sunday ruled out any move to restrict remuneration of CEOs saying it was best left to the boards of companies. We still believe that the salaries are best determined by the boards of various companies and the government as such has no intention of imposing restrictions on CEOs salaries, Singh replied to a question on whether the government was concerned about salaries of CEOs.

In my address to one of the meetings of CII,I had raised the issue in a general way, the Prime Minister said,adding the government has not taken any view on the issue.

The Prime Minister also asserted that the inflationary trend in essential commodities would moderate in the coming months and the worst was over. Unfortunately,a number of factors have contributed to the inflationary trend in the prices of essential commodities,including the rise in prices of commodities in the international markets,an inadequate monsoon and the increased support prices to farmers for their produce. But the worst I believe is over, Singh said at an interactive session with industrialists,businessmen,educationist,academicians and lawyers organised by the Mumbai unit of the Congress.

He added India had weathered the recent global economic turnaround with greater success than most other counties.

Singhs statement on CEO salaries is crucial when the minister for corporate affairs,Salman Khursheed,last week advised India Inc to refrain from doling out vulgar salaries to CEOs.

Khursheed had said the parliamentary standing committee on finance,which is scrutinising the provisions of the new Companies Bill tabled in the Lok Sabha in August,would hold a detailed discussion on the issue of remuneration of CEOs. He added the government would move forward after it receives the report of the committee. The statement had invited reactions from the industry and business chambers,which argued that there should be self regulation for addressing the issue of CEO salaries instead of any government intervention.

Singh had said earlier the Indian economy is likely to grow at 6.3 to 6.5 per cent in the fiscal year to March 2010,or a seven-year low. Economic stimulus measures were likely to continue as Asias third-largest economy was not operating at full capacity,Singh has said.

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Although the overall inflation is below one per cent,the prices of essential goods,especially vegetables like potato and onion,have continued to rise relentlessly causing pain to common man. Answering questions on the possibility of another farm debt waiver scheme,the Prime Minister said,It will not be proper. Pointing out that loan waiver scheme was a one-time measure,Singh said the government would try to find out meaningful solutions to the problems of farmers if they continue to face problems after implementation of the debt waiver scheme. As regards the implementation of the Goods and Services Tax GST,Singh said efforts were on to build consensus and introduce the new tax regime.

The government is proposing to implement the GST,which will subsume various taxes like excise,service tax and octroi,with effect from April 1,2010.