Vulgar Salary; poor country rich people

8/14/2019 Vulgar Salary; poor country rich people

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Vulgar salaries; Innovation versusRegulation

The vulgar salaries of CEOs of some

companies have attracted societys

attention. The government is also

considering bringing a legislation to

regulate the enhancement of salaries

of CEOS . The fattening and getting monster in

size the salaries of hundreds of CEOs

across India has invited both national an

international media attention. The growing

number of persons in the list annually

published by Forbes Magazine has also

invited attention of both common man and

politicians in this country. The statement

of Salman Khurshid, the minister for

corporate affairs has ignited the debate

across the nation as to whether thereshould be any regulation vis--vis vulgar

salaries of CEOs in India or not. Only few

moths back, Prime Minister Dr. Man Mohan

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Singh had also advised corporate world to

rethink over ever increasing salaries and

perks of the CEOs which, he lamented,

widens the gulf between rich and poor and

haves and have nots. PM was also

disapproving the vulgar and gargantuan

salaries in social and ethical perspective

and said that this heightens the social

tensions in the society because whenpeople see this huge gap and wants to

imitate the ostentatious life styles of rich

and famous over TV screens often get

frustrated and tend to resort to violent

and unlawful means.

HUGE GAP- the list appearing in public

domain through media regarding top 10

highest paid salaries CEOs, suggests that

the number has increased both in size and

numbers. Persons like Mukesh Ambani

who tops the list gets more than 44crore( 440 million) as annual salary,

whereas as Pawan Kant Munjal of hero

Honda gets more than Rs/-150 million per

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annum. The list is being added by new

debuts every year meaning thereby that

more and more people of fat and vulgar

salaries are being born in India. Many

people may argue that what is wrong in it?

Apparently nothing unethical and

lamentable appears in this new corporate

culture. China, the third largest and fasted

growing economy in the globe which hascelebrated its 60th anniversary of its birth

of communism with huge pomp and

prowess, has also witnessed incredible

increase in numbers of HNIs and the

number of millionaires here has gone up

to unbelievable 8, 25,000. The Chineseeconomy grew by 67 times since 1979,

the year when Deng Xiaoping took over

the rein of this Asian dragon.

But this does not justify situation in our

countries which is far from satisfaction.Our economy has also grown over a

decade or so but at the same time and we

too have occasions to celebrate, but we

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have created more deserts than oasis.

More than 80% Indians do not spend even

Rs/- 20 on them. Our country has still the

stigma of having largest number of under

nourished and mal nourished children. The

health indicators and socio-economic

indicators do not speak eulogy for us. The

Human Development Index (HDI) launched

by UNDP in 1990 has published its 2009reports in which India slipped at 134th

position.

According to World Health Organization,

about 49% of the Worlds under weight

children and 34% of the Worlds stunted

children and 46% of Worlds wasted

children live in India. On contrary to this,

about 83, 000 Indians have liquid assets

more than 1 Million dollars. There are

millions of people who own more than 5

palatial buildings whereas there arehundreds of thousands of people who

sleep under sky.

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We have still hundreds of villages and

towns which are not electrified and

connected with good roads. We use

mineral waters in cities whereas; people in

many rural areas do not have access to

safe drinking water. There are millions of

homeless people and Indira Awas Yojna, a

flagship scheme for providing homes to

BPL families is still to provide even theminimum space required homes to all

eligible BPL families. On the other hand

there are people who spend 700 crore on

one building to live in. what a dichotomy

and contrast indeed! Under this backdrop

how can India afford such vulgar salariesto some of the CEOs?

INNOVATION versus REGULATION-

Ministers public utterance against the

vulgar salaries of CEOs has triggered a

public debate and the society is verticallydivided on this issue. The people having

views of no regulation on the salaries of

CEOs suggests that any regulation from

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outside may be from government, would

jeopardize the process of innovation in

India. There shall be a brain drain if the

salaries are put under a fixed ceiling, they

warn. Some of the High Net worth

Individuals (HNI) passes sarcastic remarks

and say you can keep monkey by

paying grams. But experiences in the

past reveal another story. In India forexample, all innovations and inventions

have come from government aided or

owned laboratories or from public sectors.

Privates sectors do not simply bother to

invest in Research and Development

(R&D). The inspiration of opening ofeconomy and pursuing policies of

Liberalization, privatization and

globalization came from government side.

The stimulus of innovations has been

coming from regulations and not from de-

regulation. In fact the de-regulation andexcessive leverage in the financial system

has given us worst ever global financial

crisis and it is the regulation which is

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providing stimulus to turn it round. Even in

USA, efficient market hypothesis of

Eugene F ama which later became of less

regulation in the financial market of the

world did not belong to any commercial or

investment bank, rather Fama belonged to

academia. Therefore the logic of this kind

is rubbish and need not deserve hearing.

The government must come up with acomprehensive legislation with respect to

providing a ceiling on the ever growing

size of salaries of the CEOs otherwise it

will further the dissent in our society and

widen the gap between rich and poor.

It is very surprising that when a company

is technically owned by share holders, why

then they are not taken into confidence

and concurrence to fix or to enhance

salaries of CEOs and other employees of

these companies. The legislation candeliberate upon this issue and make

provisions so that consent of share holders

is made mandatory so that the uneven

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vertical growth of salaries of CEOs are

curbed and regulated.

No society and economy can thrive andgrow under such dichotomy and

contradictions. Amartya Sen has rightly

said that growth without democratic

distribution brings no prosperity in the

country, after all the ongoing financial

crisis and global recession has beencaused due to privatizing profits and

socializing losses and if we want to

create sustainable social and economic

order, we will have to distribute the profits

also and not only losses.

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Vulgar Salary; poor country rich people