Sebi to bring in norms for disclosing CEO pay

With the new norms in place, Sebi hopes to improve the level of disclosures made by companies which in turn would help investors to make better informed decisions

GN Bureau | September 23, 2013



Providing the necessary fillip to corporate governance norms in the country, the Securities and Exchange Bureau of India (Sebi) is set to roll out a series of checks and balances to monitor the fat paychecks of CEOs of companies listed on the stock exchange. In addition, the markets watchdog has asked these companies to put in place a whistle-blower policy to protect employees reporting the malpractices being followed by top-level executives.

According to a report in ZeeBiz, the markets watchdog will make requisite changes in the Listing Agreement framework and other corporate governance norms that companies need to comply with, a senior official said.

Companies will be required to provide a ratio of top management salaries and the median staff salary to the regulator. Also, companies will have to explain the relationship between salaries of top executives and the companies’ performance to their shareholders.

The other measures to be incorporated include greater powers to minority shareholders, succession planning in an orderly manner and hefty penalties for non-compliance with norms.

Earlier this year, the regulator had released a discussion paper on improving corporate governance standards and had sought comments from the public. In addition, the recently passed Companies Act has also introduced various steps to enhance corporate governance practices.

The guidelines come in the wake of numerous top-level executives continuing to earn hefty salaries, despite their companies reporting poor financial performance. With these norms in place, the regulator hopes to improve the level of disclosures made by companies which in turn would help investors to make better informed decisions.
 

Comments

 

Other News

BMC announces Rs 52,619.07 crore budget

Mumbai’s municipal commissioner and administrator Iqbal Singh Chahal on Saturday announced a Budget of Rs 52,619.07 crore for 2023-2024, an increase of 20.67% over a revised budget estimate of Rs 43607.10 crore for 2022-23. The overall budget size has doubled in five years. In 2017-18

Making sense of the ‘crisis of political representation’

Imprints of the Populist Time By Ranabir Samaddar Orient BlackSwan, 352 pages, Rs. 1105 The crisis of liberal democracy in the neoliberal world—marked by massive l

Budget: Highlights

Union minister of finance and corporate affairs Nirmala Sitharaman presented the Union Budget 2023-24 in Parliament on Wednesday. The highlights of the Budget are as follows: PART A     Per capita income has more than doubled to Rs 1.97 lakh in around

Budget presents vision for Amrit Kaal: A blueprint for empowered, inclusive economy

Union Budget 2023-24, presented by finance minister Nirmala Sitharaman in the Parliament on Wednesday, outlined the vision of Amrit Kaal which shall reflect an empowered and inclusive economy.  “We envision a prosperous and inclusive India, in which the fruits of development reach all regions an

Soumya Swaminathan to head M S Swaminathan Research Foundation

Former World Health Organisation (WHO) chief scientist Soumya Swaminathan takes charge as chairperson of M S Swaminathan Research Foundation (MSSRF) from February 1.   Founded by her father, the legendary agricultural scientist M S Swaminathan, MSSRF was set up to accelerate the use of m

m-Governance: Key to Digital India

The digital revolution is being led by India. Digital governance is a key component of the government's ambition to transform India into a society where everyone has access to the internet. It includes both M-governance and E-governance, which are major methods for the delivery of services via mobile devic

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now



Archives

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter