What is so vulgar about our salary?

Corporate Affairs Minister Salman Khurshid's statement against 'vulgar salaries' has gone down badly with Bangalore's CEOs, but finds support from unexpected quarters

Corporate Affairs Minister Salman Khurshid's statement against 'vulgar salaries' has gone down badly with Bangalore's CEOs, but finds support from unexpected quarters

Bangalore's top earners are livid with Corporate Affairs Minister Salman Khurshid's advice against "vulgar salaries" for CEOs.

"Austerity means cutting down on wasteful expenditures," Kiran Mazumdar Shaw, CEO, Biocon, said. "If corporate CEOs are doing a good job, then I do not understand why we should be penalised."

Other CEOs agreed with her that the minister's idea was illogical, and another attempt to control corporate houses.

Kiran Mazumdar Shaw, Biocon	Krishna Byre Gowda, MLA

Iron fist

Anand Sudarshan, CEO, Manipal Group, said, "This is like some re-invention of the Raj. Gone are the days of the Raj and centrally controlled pay scales. If the minister was referring to inappropriate exhibition of wealth, one can understand that, but paying executives a high salary is required and one needs to attract the best talents."

On a more conciliatory note, Anand said minister was trying to get people to be more socially responsible, and that, he said, was important.

"Bringing out rules and regulations cannot make anything work. All companies are taking cost cutting measures and the government should not think we are irresponsible," said Kiran Mazumdar-Shaw.

Support for Salman

Karnataka's ministers and non-CEOs agree with Salman Khurshid's views.

"There should be some parity between executives and regular workers. The disparity is getting too much. We have noticed that while CEOs' salaries are hitting the roof, people are getting fired," said Krishna Byre Gowda, MLA.

The Congress leader believes benefits should be shared in an equitable manner.

"There is a need for equality and sharing. However, this should be a voluntary initiative by the private sector. Growing disparities are never good for society," he told MiD DAY.

Sangeetha Gopal, socialite and fitness consultant, said, "I totally agree with Khurshid's statement. These people don't deserve these vulgar amounts as salary. There are so many other people who put in so much of hard work and they go unheard, and worse still, are paid basic salaries."

"I think CEOs hype their jobs too much and it's their salaries that allow them to hype it!" she added.

'How does one justify a salary of Rs 25 crore?'

Harish Bijoor, brand consultant, comments on the ceo salary row

Do you agree with Khurshid's statement?
I do believe that India is a reasonably poor nation. On the human development index we're rated at a pathetic 134. We have malnutrition, lack of education, lack of proper sanitation and a whole lot of other problems. Two thirds of our population lives with these conditions in India. Keeping that in mind, a clampdown on vulgar salaries is absolutely right. At one point of time these salaries were indecent, in terms of being too little, then they became salaries that one was proud of earning, and within no time however they've morphed into salaries that are in unimaginable amounts. How does one justify a salary of say Rs 25 crore in a country like India?

How much do you think is a vulgar salary?
It is a definition issue. It depends on the size of the organisation and stress on the CEO. If he can justify the salary he takes home on par with the work he does, then okay, else Khurshid's views stands justified.

Should the private sector take part in the austerity drive?
If it begins anywhere, it should begin in the private sector. If they were going to be austere however it would be a good idea for them to believe in it. We've all seen austerity as something fashionable and we all know how true that is. So if they are going to take heed, they better implement it properly.