VINAYAKAN V

KANNUR

KERALA

WELCOME

EXECUTIVE REMUNERATION

WHAT IS EXECUTIVE REMUNERATION

The 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 officers

• chief financial officers

• vice presidents

• managing directors and

• senior executives

FEATURES OF EXECUTIVE REMUNERATION

1. Managerial Remuneration cannot be compared to wage and salary

schemes meant for non-managerial employees in organizations.

2. 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.

3. 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 REMUNERATION

4. Managerial pay is not supposed to be individual performance measure but

rather on the unit or organizational performance.

5. Manager’s compensation, is subject to statutory sealing.

COMPONENTS OF EXECUTIVE REMUNERATION

CEO

REWARD

SALARY

BONUS

INCENTIVES

(LONG TERM)

PERQUISITES

SALARY

1. First component of executive remuneration.

2. Salary is supposed to be determined through job

evaluation.

3. 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 BONUS

Profit sharing bonus plays an important role in

today’s 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 PERKS

Any casual emoluments, free, and profit, attached to anofficer or position in addition to salary or wages.

Eg:-

• Free medical facility or reimbursement of medicalexpenses,

• free facility of refreshments,

• entertainment,

• telephone,

• transport,

• Interest-free loan,

• Scholarship

• Leave travel concession

EXAMPLES OF FAMOUSE CEO’S GETTING HIGH SALARY

N Chandrasekaran

MD & CEO,

Tata Consultancy Servics

Annual Salary: Rs 11.6

crore

EXAMPLES OF FAMOUSE CEO’S GETTING HIGH SALARY

Vineet Nayar

Vice Chairman & Joint MD,

HCL Technologies

Annual Salary: Rs 8.42 crore

(Rs 84.2 million)

EXAMPLES OF FAMOUSE CEO’S GETTING HIGH SALARY

T K Kurien

CEO, Wipro

Annual Salary: Rs 6.13 crore

(Rs 61. 3 million)

EXAMPLES OF FAMOUSE CEO’S GETTING HIGH SALARY

Infosys CEO Vishal Sikka

New Infosys CEO

Sikka to get annual

salary of Rs 30.3 crore

EXAMPLES OF FAMOUSE CEO’S GETTING HIGH SALARY

For FY14, Adi Godrej is remuneration stood at Rs

9.45 crore, up 39% over the year earlier.

REFERENCE

1. Compensation and Reward Management- B D Singh

2. Human ResourceManagement –

Biswajeet Pattanayak

3. Personnel Management – C.B Mamoria

VINAYAKAN V

ROLL NO 43

ICM KANNUR