Download - Remuneration of ceos
![Page 1: Remuneration of ceos](https://reader036.vdocument.in/reader036/viewer/2022071815/55a8071e1a28abd32f8b46d6/html5/thumbnails/1.jpg)
REMUNERATION OF CEOs
Presented By: Adarsh Badonia
Divya Acharya
Divyesh Bohra
Mayur Bhakre
![Page 2: Remuneration of ceos](https://reader036.vdocument.in/reader036/viewer/2022071815/55a8071e1a28abd32f8b46d6/html5/thumbnails/2.jpg)
Topics for Discussion
How much is the average salary of a CEO (in India and International markets)
Are CEO’s always overpaid?
How CEO’s remuneration plays an important role in Transparent Corporate
Governance?
Does excessive pay for less-skilled CEOs signal a breakdown in corporate
governance?
Whats your view….???
![Page 3: Remuneration of ceos](https://reader036.vdocument.in/reader036/viewer/2022071815/55a8071e1a28abd32f8b46d6/html5/thumbnails/3.jpg)
INTRODUCTION
The most important factor between an Employer-Employee relation is Salary.
Compensation planning is one of the crucial aspect of modern times, where
competition is fierce and talent is scarce. Effective Compensation planning is
inevitable in order to attract and retain the best talent.
Governance mechanism that seeks to align the interests of managers and
owners through salaries, bonuses, and long term incentive compensation,
such as stock options.
![Page 4: Remuneration of ceos](https://reader036.vdocument.in/reader036/viewer/2022071815/55a8071e1a28abd32f8b46d6/html5/thumbnails/4.jpg)
Executive Compensation
Looking at:
Pay
Bonuses
Performance
Company makeup
![Page 5: Remuneration of ceos](https://reader036.vdocument.in/reader036/viewer/2022071815/55a8071e1a28abd32f8b46d6/html5/thumbnails/5.jpg)
What is Executive Compensation?
Core Compensation= Base Pay & Bonus
Short term Incentives
Stock Options
Fringe Compensation
![Page 6: Remuneration of ceos](https://reader036.vdocument.in/reader036/viewer/2022071815/55a8071e1a28abd32f8b46d6/html5/thumbnails/6.jpg)
Basis of Remuneration of CEOs:-
Qualifications and Experience of the candidate.
Benchmarking
Job evaluation
![Page 7: Remuneration of ceos](https://reader036.vdocument.in/reader036/viewer/2022071815/55a8071e1a28abd32f8b46d6/html5/thumbnails/7.jpg)
Chief Executive Officer (CEO) Salary
A Chief Executive Officer (CEO) earns an average salary of Rs 3,324,027 per
year. Experience strongly influences income for this job. The highest paying
skills associated with this job are Strategic Marketing, People Management,
Business Strategy, Strategy, and Marketing Management. Most people in this
job have more than five years' experience in related jobs.
The median expected annual pay for a typical Chief Executive Officer in the
United States is $748,805 so 50% of the people who perform the job of Chief
Executive Officer in the United Sates are expected to make less than
$748,805.
![Page 8: Remuneration of ceos](https://reader036.vdocument.in/reader036/viewer/2022071815/55a8071e1a28abd32f8b46d6/html5/thumbnails/8.jpg)
Remuneration of CEOs
Chief Executive Officers (CEOs) of public companies are routinely perceived
to be overpaid and their boards are perceived to provide poor or limited
oversight. These perceptions have three typical components: (1) CEOs are
overpaid and their pay keeps increasing;
(2) CEOs are not paid for performance; and
(3) boards are not doing their jobs as monitors
![Page 9: Remuneration of ceos](https://reader036.vdocument.in/reader036/viewer/2022071815/55a8071e1a28abd32f8b46d6/html5/thumbnails/9.jpg)
Who Sets Executive Comp?
Different for Each Company
Compensation Consultants
Compensation Committees
Board of Directors
Shareholders
![Page 10: Remuneration of ceos](https://reader036.vdocument.in/reader036/viewer/2022071815/55a8071e1a28abd32f8b46d6/html5/thumbnails/10.jpg)
Board of Directors
Is it fair for Board of Directors to determine salary?
“Boards are often quite friendly with the CEOs and find it hard to impose large
decreases in compensation on their friends”
Boards should usually be made of outsiders to avoid much conflict
Executive Compensation and Shareholder Value
![Page 11: Remuneration of ceos](https://reader036.vdocument.in/reader036/viewer/2022071815/55a8071e1a28abd32f8b46d6/html5/thumbnails/11.jpg)
Reasoning
Board of Directors feel exec’s deserve high salary
Doing good job in hard times
Doing more work to manage in a bad economy
![Page 12: Remuneration of ceos](https://reader036.vdocument.in/reader036/viewer/2022071815/55a8071e1a28abd32f8b46d6/html5/thumbnails/12.jpg)
How is pay measured?
There are two ways to measure CEO pay:
The first is estimated or grant-date pay. This includes the CEO’s salary, bonus,
the value of restricted stock, and the estimated value of options issued that
year.
The second measure is realized pay. This includes the CEO’s salary, bonus, the
value of restricted stock, and the value of options exercised that year
![Page 13: Remuneration of ceos](https://reader036.vdocument.in/reader036/viewer/2022071815/55a8071e1a28abd32f8b46d6/html5/thumbnails/13.jpg)
Are CEOs Overpaid ?
![Page 14: Remuneration of ceos](https://reader036.vdocument.in/reader036/viewer/2022071815/55a8071e1a28abd32f8b46d6/html5/thumbnails/14.jpg)
TOP 10 Paid CEOs in INDIA
Kalanithi Maran
Annual Salary: Rs 56.25 crore
Kavery Kalanithi
Annual Salary: Rs 56.24 crore
Naveen Jindal
Annual Salary: Rs 54.98 crore
Kumar Mangalam Birla
Annual Salary: Rs 49.62 crore
![Page 15: Remuneration of ceos](https://reader036.vdocument.in/reader036/viewer/2022071815/55a8071e1a28abd32f8b46d6/html5/thumbnails/15.jpg)
Pawan Munjal
Annual Salary: Rs 32.80 crore
Brijmohan Lall Munjal
Annual Salary: Rs 32.73 crore
Sunil Kant Munjal
Annual Salary: Rs 31.51 crore
P R Ramasubrahmaneya Rajha
Annual Salary: Rs 30.96 crore
Shinzo Nakanishi
Annual Salary: Rs 30.90 crore
Vishal Sikka
CEO, Infosys
Salary: Rs 30 crore
![Page 16: Remuneration of ceos](https://reader036.vdocument.in/reader036/viewer/2022071815/55a8071e1a28abd32f8b46d6/html5/thumbnails/16.jpg)
Least Paid CEOs in INDIA
![Page 17: Remuneration of ceos](https://reader036.vdocument.in/reader036/viewer/2022071815/55a8071e1a28abd32f8b46d6/html5/thumbnails/17.jpg)
How CEO’s remuneration plays an important
role in Transparent Corporate Governance?
Academic research shows that executive pay is not mainly driven by job
demands or pay for performance.
Since the 1970s CEO pay has risen by 686 percent.
Executives involved in many of the largest corporate collapses in American
history were extraordinarily well-paid.
CEO greed has been shown to be related to a host of negative outcomes.
![Page 18: Remuneration of ceos](https://reader036.vdocument.in/reader036/viewer/2022071815/55a8071e1a28abd32f8b46d6/html5/thumbnails/18.jpg)
Conclusion
Executive Compensation is different
Much more than just salary
Always a debatable topic
Ever-growing issue with the current economy
![Page 19: Remuneration of ceos](https://reader036.vdocument.in/reader036/viewer/2022071815/55a8071e1a28abd32f8b46d6/html5/thumbnails/19.jpg)
THANK YOU !!
It is not necessary for all men to be great in action. The greatest and sublimest power is often simple patience.
![Page 20: Remuneration of ceos](https://reader036.vdocument.in/reader036/viewer/2022071815/55a8071e1a28abd32f8b46d6/html5/thumbnails/20.jpg)
REFRENCES:
http://www.livemint.com/Companies/1ByVEuyR0TDXqvbDnTHz8J/Who-are-Indias-lowestpaid-CEOs.html
http://www.rediff.com/business/slide-show/slide-show-1-special-tech-5-highest-paid-indian-it-ceos/20140703.htm#3
http://www.sify.com/finance/gallerylisting/category/corporate.html
http://www.gsb.stanford.edu/insights/when-ceos-are-paid-bad-performance
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2134208
http://www.nber.org/feldstein_lecture_2012/Kaplan%20Feldstein%20September%20NBER.pdf
http://www.macleans.ca/economy/money-economy/global-ceo-to-worker-pay-ratios/
http://www1.salary.com/Chief-Executive-Officer-Salary.html
http://inequality.org/corporate-governance-pay-performance-greeds-good/