Amid the raging debate over high CEO salaries, industry chamber Federation of Indian Chamber of Commerce and Industries (FICCI's) president Harsh Pati Singhania today said if talent is to beattracted one has to pay for it and that in most cases they are "within limits".
Asked for his reaction to corporate affairs minister Salman Khursheed's recent remark on outrageous salaries paid to CEOs, Singhania said, "If you want talent, you have got to pay for it".
"In most cases, it's all (salary of CEOs) within limits", he added. VC and MD of Bharti Enterprises Rajan Bharti Mittal favoured the "horses for the courses" approach in this regard.
"If they are efficient companies who are doing well, who are responsible, well-governed, they are responsible towards shareholders and stakeholders...I think let them be left alone," Mittal said, adding that the government can have an issue if the companies are not governed well.
On October 4, Khurshid advised India Inc to refrain from doling out "vulgar" salaries to CEOs: "I think when we are working on this (austerity), we can hardly say that we (will) shut our eyes on what salary the CEOs are going to take," he said.
Reacting sharply to Khurshid's comments India Inc had said any regulation of CEOs' pay may lead to flight of talent and capital from India and that pays are best decided by industry.
Prime minister Manmohan Singh also yesterday ruled out any move to impose restrictions on CEO remuneration, saying it is best left to boards of companies.
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