New Delhi: Prime Minister Manmohan Singh lashed out at corporate India in perhaps the first-of-its-kind speech for the man who is credited with the opening up of the Indian economy.
The PM's speech is an indication of the UPA Government's decisive move to turn its focus decisively to the aam aadmi after it was stung by a string of electoral reverses in the recent months.
Addressing a CII meeting, the PM said while Indian industry's success in wealth creation is worth celebrating the corporates should share the benefits of economic growth with the common man. The companies should contribute more to employee welfare and desist from granting excessive remuneration to promoters and senior executives.
India Inc is divided over Prime Minister Manmohan Singh's advise to limit the CEOs' salaries, with CII and ASSOCHAM stating the remuneration should be left to companies themselves while FICCI said it would consider the issue.
"These things cannot be legislated. Shortage of skills in key areas at the top level is a serious and genuine problem specifically in the services industry, which is facing pressure of high salaries," news agency quoted the new president of the Confederation of Indian Industry Sunil Mittal as saying.
He, however, said that there should be a co-relation between the size of a company and the salaries to their employees.
Manmohan Singh said that the industry should ‘resist excessive remuneration to promoters and senior executives and discourage conspicuous consumption’.
ASSOCHAM President V N Dhoot said that the salary packages should be decided by the industrial houses themselves.
"It should be based on the competence level of the people being hired,” Dhoot added.
However, a code can be developed on the salary structure of CEOs after a consensus.
FICCI, however, reacted with a different approach and agreed what the Prime Minister said.
"We will keep in mind his (PM) advice on structuring executive salaries in the context of the overall national priorities," FICCI President Habil Khorakiwala said.
However, the three chambers were in complete agreement with the Prime Minister to check the ostentatious expenditure and vulgar display of wealth by the rich and famous.
CII Chief said Prime Minister's concern was in view of the wealth inequality in the country and ‘in-your’ face spending that hurts people.
"It is completely uncalled for and would lead to social unrest," Dhoot said. Khorakiwala said a culture of savings and investment should be promoted and conspicuous consumption be shunned.
(With agency inputs)
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