Thursday, October 11, 2012

Executive Compensation and Corporate Governance

Although the issue of executive compensation has not been as dominant in the corporate governance discourse in India as it has been in other leading economies, it has begun to attract significant attention lately. While we have not had a chance on this Blog to touch upon the recent debates, it would be useful to refer our readers to a couple of posts (here and here) by Professor Balasubramanian on his blog on Governance and Responsibility. Apart from a discussion of some recent instances involving executive compensation, the posts contain a number of broader points on corporate governance in India.

1 comment:

vswami said...

1. The issues posed by the learned Prof. on the topic of Governance and Responsibility , are, in no small measure, responsible for the said ideological concept of good governance having been increasingly forgotten and wantonly given a go-bye.
2. To recall with nostalgia, in the 'good old days', the company law (in its 'original' avatar) used to have rather very tight and close control, also both the means and the will to effectively monitoring the factor of 'executive remuneration' ( taking within its ambit that of the 'interested' promoters / majority shareholders).There is no gainsaying that, so far as one's memory goes, that in no way was known to have ever acted as a deterrent in any manner to a disciplined behaviour and 'good governance'.
3. It is an open secret that has come to be growingly considered, and taken, just as several other righteous concepts, in the stride, without even a whisper, or whimper, as nothing seriously objectionable. Instead, it is widely proffered, albeit profanely, and projected as the necessary consequence of the consciously nurtured and superveningly flourishing ‘global outlook’; which in recent times, having been universally adopted, is favoured as the mainstay for all such purposes.
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