Enormous pay-packages! Justified?

Sitting at the station glancing through a magazine, almost falling asleep, this figure I saw made my eyes pop out like fresh popcorn, the text read, “TCS and Infosys spend half of their revenue paying salaries”. Considering the size of the company it is well assumed that the salaries they pay would be a huge figure but this wasn’t expected. We all know the concept of the rich getting richer and the poor getting poorer. So it was obvious that this money wasn’t going into the common staff’s accounts. The fact is that huge sums are paid to the people who occupy the corner offices on the top floor of these company’s headquarters. Is it really fair to pay this much? Is the contribution so significant? Well there are two sides by which I look at this, some CEO’s do justice to their firm by taking revenues and profits through the roof-top but some are paid well even when the company fails to improve from the previous year. While some CEO’s prefer a high package to make a statement, some enjoy getting paid less but are compensated by the shares they own as that makes their pockets heavier than their pay check can in 5 years. But when compared globally, our Indian CEO’s stand nowhere. To give an example, Satya Nadella from Microsoft enjoys an annual compensation of 525 crores , equivalent to the salaries of India’s top 14 highest paid CEO’s combined. This is a sign of increased competition between people and the companies, but it just proves one fact, to get the top man, you need to pay top dollar. And for student managers like myself it’s a huge motivational factor as all those expensive cars, holidays, scenic views are easily achievable dreams if we work hard.

Shaan Vasavada

PGDM 2015-17