'No cap on CEO's salaries in new Companies Bill'

The existing 11 per cent cap on salaries of CEOs of corporates has been removed in the new Companies Bill-2009.

Minister of State for Corporate Affairs Salman Khurshid said today here that the government did not try to control salaries of the CEOs, as it should be decided by the shareholders.

The Union Minster, who inaugurated the 37th national convention of Institute of Company Secretaries of India, said the new Bill, which was tabled in the Lok Sabha in August, was being examined by the Parliamentary Standing Committee.

He, however, hinted that the corporate executives should think as responsible citizens before deciding on huge salaries.

"Everyone knows the prevailing economic conditions in the world. Countries like USA and Japan are also reeling under restrictions and are following austerity measures."

Khurshid also refuted reports that he was against fat salaries for CEOs. He said that no company CEO approached the government to request the removal of cap on their salaries. The government itself felt the need to remove the cap, he added.

The corporate affairs minister also appreciated the reported salary cut by Mukhesh Ambani, chairman, Reliance Industries by 66 per cent.