Sebi may put chek on CEO pay

Sep 23, 2013

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New Delhi: In a major overhaul of corporate governance norms, Sebi will soon put in place stringent checks against unjustifiable CEO salaries at listed companies and ask them to adopt a whistle-blower policy to protect the employees exposing any wrongdoings by the top management.
Sebi would soon make necessary changes in its framework for the listing agreement and other regulations that every company needs to follow with regard to their corporate governance practices after becoming a publicly listed entity, a senior official said. Sebi had sought comments from the general public and other stakeholders earlier this year for a major overhaul of corporate governance norms. Besides, the new Companies Act has also proposed various new measures in this regard.
The necessary changes are being finalised after taking into account the public suggestions, expert opinion and the Companies Act, 2013 provisions, the official added.
The other proposed measures include greater powers to minority shareholders, an orderly succession planning and hefty penalties for non-compliance to model corporate governance practices.With regard to executive pay, Sebi will ask the companies to provide a ratio of management remuneration and the median staff salary.

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