http://timesofindia.indiatimes.com/India_Inc_says_no_to_CEO_salary_curbs/articleshow/2075120.cms
India Inc says no to CEO salary curbs
NEW DELHI: The Prime Minister’s call to India Inc to trim salaries of top executives has got a thumbs down from industry, even as CPM celebrated it as a validation of its critique of Manmohanomics.
“Salaries cannot be legislated,” said Sunil Bharti Mittal, the just-elected head of the corporate club, the Confederation of Indian Industries.
Singh had on Thursday used CII’s platform to make a pitch for reining in salaries on the ground that they could provoke a backlash.
Inaugurating his term as CII head, Mittal tried hard to rebut the argument implicit in the PM’s statement that companies were favouring their CEOs by lavishing huge salaries on them. Salaries were a product of demand dynamics, the Airtel chief said.
“There is shortage of skill at the top level and more specifically in the service sector, which is why pay packages of senior executives are high,” Mittal said. Anyway, the kind of salary the PM was referring to was far from being the norm in industry and just a handful among the total workforce got it, he added.
But while the CII chief vehemently opposed any kind of legislation to control salaries, he supported the PM’s concern on inequalities. “The PM’s message is to be taken in the right spirit. His concern was in view of the wealth inequality in the country.... It’s the in-your-face expenditure that hurts the have-nots. He meant ostentatious display of wealth should be avoided,” Mittal said.
So did Bernanke. Capitalists fearing a revolution...where have I read that?
India Inc. is a common term used by the media to refer to corporate India.
Mr Singh warned an audience including some of India’s richest tycoons that they could face severe social unrest if they did not curb their spending and do more to bridge the country’s yawning income gap.
“In a country with extreme poverty, industry needs to be moderate in the emolument levels its adopts,” he told the opening of the annual conference of the Confederation of Indian Industry on Thursday.
“Rising income and wealth inequalities, if not matched by a corresponding rise of incomes across the nation, can lead to social unrest.”
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But while the CII chief vehemently opposed any kind of legislation to control salaries, he supported the PM’s concern on inequalities. “The PM’s message is to be taken in the right spirit. His concern was in view of the wealth inequality in the country.... It’s the in-your-face expenditure that hurts the have-nots. He meant ostentatious display of wealth should be avoided,” Mittal said.
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Management 101.... and good, balanced, advice from both men.
Good advice that is unlikely to be appreciated by those who most need to hear it, however. “Gilded age” conspicuous consumption is an obsession like many others: easy to recognize and very difficult to curb by those most in its grip.
Matt 13:22 Now he who received seed among the thorns is he who hears the word, and the cares of this world and the deceitfulness of riches choke the word, and he becomes unfruitful.
Prov 10:15 The rich man’s wealth is his strong city: the destruction of the poor is their poverty.
Ps 90:12 So teach us to number our days, That we may gain a heart of wisdom.
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Luke 12:13-21
13 Then one from the crowd said to Him, “Teacher, tell my brother to divide the inheritance with me.”
14 But He said to him, “Man, who made Me a judge or an arbitrator over you?” 15 And He said to them, “Take heed and beware of covetousness, for one’s life does not consist in the abundance of the things he possesses.”
16 Then He spoke a parable to them, saying: “The ground of a certain rich man yielded plentifully. 17 And he thought within himself, saying, ‘What shall I do, since I have no room to store my crops?’ 18 So he said, ‘I will do this: I will pull down my barns and build greater, and there I will store all my crops and my goods. 19 And I will say to my soul, “Soul, you have many goods laid up for many years; take your ease; eat, drink, and be merry.”’ 20 But God said to him, ‘Fool! This night your soul will be required of you; then whose will those things be which you have provided?’
21 “So is he who lays up treasure for himself, and is not rich toward God.”
Dumb...even for a communist to say. How does NOT spending help bridge any 'gap'? The spending of the rich is exactly what distributes wealth. You do or make something the want...like Swedish Meatballs for the weddings....SHAZAM!! I think what the guy must really be saying is deposit it all in the banks, where India's government has first dibs on the capital. or something like that.
As long as the Prime Minister is giving advice and not making law, I don’t have a problem with it. As long as the people he is advising are free to ignore him.
Our home grown socialists, Hillary et al, want to confiscate money from people they consider “rich”.
““An area of great concern is the level of ostentatious expenditure on weddings and other family events. Such vulgarity insults the poverty of the less privileged, it is socially wasteful and it plants the seeds of resentment in the minds of the have-nots.””
Does it insult the chefs, entertainers, waiters, janitors, limo drivers, seamstresses, suitmakers, gift sellers, shoe salesmen, flower arrangers, flower growers, farmers, and others whose products and services were purchased for the event?
No - it spreads the money through the entire economy. Supply side... Trickle down... call it what you will.
Socialists are stupid.