Govt. sets up panel to review executive pay at loss making companies - October 14, 2012

Generally pay packages of executives is based on a company’s performance, but their have been cases where pay of senior level executives is not concurrent with company’s loss.

Generally pay packages of executives is based on a company’s performance, but their have been cases where pay of senior level executives is not concurrent with company’s loss. Although loss making companies require government’s approval in any salary related decisions of their top level executives, many executives of loss making companies in aviation and infrastructure provide their executives with fat pay packages. A panel has hence been set up to study the current trends of pay levels in loss making companies and will aim to boost a healthy corporate governance in the country.

Source: www.financialexpress.com, October 14, 2012. “Govt panel to study executive pay at loss-making companies”

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