Exexcutive remuneration

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WHAT IS EXECUTIVE REMUNERATIONThe financial payments and non monetary benefits provided to high level management in exchange for their work on behalf of an organization.WHO GETS:-chief executive officerschief financial officersvice presidentsmanaging directorsand senior executives4FEATURES OF EXECUTIVE REMUNERATIONManagerial Remuneration cannot be compared to wage and salary schemes meant for non-managerial employees in organizations.Managers are denied the privilege of having of having unions and collective bargaining. Their competence and contribution are their strength for determining their pay package. Secrecy is maintained in respect of managerial remuneration. This is done because no two managers in the private sectors, in the same grade receive the same pay. Compensation and reward depends upon such factors as competence, length of service, contributions and loyalty to the company

FEATURES OF EXECUTIVE REMUNERATIONManagerial pay is not supposed to be individual performance measure but rather on the unit or organizational performance.Managers compensation, is subject to statutory sealing.COMPONENTS OF EXECUTIVE REMUNERATIONSALARYFirst component of executive remuneration.Salary is supposed to be determined through job evaluation.Salary of the manager varies by type of job, size of organization, region of the country and the type of industry.BONUS or PROFIT SHARING BONUSProfit sharing bonus plays an important role in todays competitive managerial payment programmes. This types of incentive is generally shortened and is based on performance or profit sharing.LONG TERM INCENTIVES Stock options are long term benefits offered to managers. Companies allow managers to purchase their shares at fixed prices. PERQUISITES or PERKSAny casual emoluments, free, and profit, attached to an officer or position in addition to salary or wages.Eg:-Free medical facility or reimbursement of medical expenses, free facility of refreshments, entertainment, telephone, transport, Interest-free loan, ScholarshipLeave travel concessionEXAMPLES OF FAMOUSE CEOS GETTING HIGH SALARY

N ChandrasekaranMD & CEO, Tata Consultancy ServicsAnnual Salary: Rs 11.6 croreEXAMPLES OF FAMOUSE CEOS GETTING HIGH SALARY

Vineet NayarVice Chairman & Joint MD, HCL TechnologiesAnnual Salary: Rs 8.42 crore (Rs 84.2 million)EXAMPLES OF FAMOUSE CEOS GETTING HIGH SALARY

T K KurienCEO, WiproAnnual Salary: Rs 6.13 crore (Rs 61. 3 million)


Infosys CEO Vishal Sikka

New Infosys CEO Sikka to get annual salary of Rs 30.3 croreEXAMPLES OF FAMOUSE CEOS GETTING HIGH SALARY

For FY14, Adi Godrej is remuneration stood at Rs 9.45 crore, up 39% over the year earlier.REFERENCECompensation and Reward Management- B D SinghHuman ResourceManagement Biswajeet Pattanayak3. Personnel Management C.B Mamoria