Industry chamber wants executive salary linked to attendance

Independent directors pay should be linked to their attendance in the board and committee meetings,and minimum attendance should be 70 per cent,industry body CII has recommended in a report on Corporate Governance. The report of the CII task force on corporate governance,chaired by Naresh Chandra,former Cabinet secretary,further suggested that the fixed component of the pay,which is normally 30 per cent of the total cash remuneration package,of non-executive directors and independent directors should be relatively low,thereby making the structure of remuneration to NEDs and independent directors more transparent and well specified. In order to prevent Satyam-like fraud,the CII had set up a task force in February early this year to recommend ways of improving corporate governance standards.

Corporate affairs minister Salman Khursheed said,There would be a comprehensive voluntary code which we hope to bring out by the end of December. We are getting feedback from industry bodies…what is to be made mandatory and what is to be left as voluntary,we will look…more voluntary and non mandatory,if its workable,we would be very happy.