CEOs salary cap removed in new Companies Bill: Khurshid

CEOs salary cap removed in new Companies Bill: Khurshid Hyderabad: The existing 11 per cent cap on salaries of CEOs of corporates has been removed in the new Companies Bill-2009.

Minister of State for Corporate Affairs Salman Khurshid said today here that the government did not try to control salaries of the CEOs as it should be decided by the share holders.

The Union Minster, who inaugurated the 37th national convention of Institute of Company Secretaries of India, said the new Bill, which was tabled in the Lok Sabha in August, was being examined by the Parliamentary Standing Committee.

He however hinted that the corporate executives should think as responsible citizens before deciding on huge salaries.

Everyone knows the prevailing economic conditions in the world. Countries like USA and Japan are also reeling under restrictions and are following austerity measures.

He refuted the reports that he was against fat salaries for CEOs. He said that no company CEO approached the government to request the removal of cap on their salaries. He said the government itself felt the need to remove the cap.

He appreciated the reported salary cut by Mukhesh Ambani, chairman, Reliance Industries Limited by 66 per cent.

‘SFIO will continue its probe on Satyam Computers’

The Serious Fraud Investigation Office (SFIO) under the Ministry of Corporate Affairs will continue its probe on Satyam Computers fraud.

Minister of State for Corporate Affairs, Salman Khurshid today said, SFIOs investigation was limited to probing the alleged violations of corporate laws by Ramalinga Raju, then chairman of Satyam Computers and others.

He Refuted reports that the government had ordered SFIO to stop investigation.

Foreign Exchange violations would be probed by the Enforcement Directorate, Revenue manipulations would be looked by the Income Tax department and other cases would be investigated by the Central Bureau of Investigation (CBI), the minister said.

The ministry had devised a system where the government would be able to detect corporate frauds at an early stage, he said.

There will be 15 warning parameters that would be applied to companies which are under scanner, Khurshid said.

The officials will check periodically on revenues, profits and other issues like employees strength. The system will alert if there is any abnormality in records, the minister said.

The companies which do not satisfy those parameters would be questioned and closely monitored to avert future frauds.

Bureau Report