Wednesday, 11 February 2009

Will Indian CEOs take salary cuts?

So what if the global meltdown is causing job losses, the CEOs and top managers keep getting filthy amounts of salaries.

Despite losses the breathtaking salaries are somehow justified by the companies and bonuses are obtained by job cuts at lower and middle-level.

After US president Barack Obama chided the American industry honchos for their shamelessness in getting perks and raising their own salaries in times of recession, India Inc needs to introspect and take a decision.

For a country like India where there is a huge disparity between the poor and the middle class as also between the middle and upper-middle class, the high salaries are simply unjustifiable.

In fact, Indian CEOs and managers have the highest salaries in the world. Stung by the criticism, the Citigroup's CEO Vikram Pandit has announced that he will take a token $1 monthly salary till the bank again gets into profit.

Will this shame Indian CEOs and managers or they are even more shameless? If only a few top officials take salary cuts, dozens of jobs can be saved. See the chart above that shows how companies went into losses but the CEOs or MDs didn't give a damn and increased their pays without an iota of shame.

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