CEO's compensation

There has been a heated debate in media about huge pay packages drawn by top corporate executives. This debate was initiated by our corporate affairs minister as a way to generate support for his so called "austerity drive". It was not received favorably by the industry which has been of the opinion that shareholders are the best judge for deciding the compensation of top corporate honchos. The argument given by the government is that such huge salaries create social unrest due to rising income inequality. The government has not been able to get rid over its socialistic past which gave rise to a culture which never recognised talent resulting in massive brain drain. However, with the passage of time ,our government realised the positive impact these MNCs can have on our economy which led to the liberalization of our economy in early 1990's.

Moreover, bureaucrats and politicians have not been able to digest such huge pay packages in MNCs. Everyone knows about ways in which these people have been using state machinery for personal benefit. They occasionally come up with beautifully coined words like 'austerity drives' to deceive the common public that taxpayers's money is being put to optimum use. Its high time that our government stop cribbing about CEO's salaries and start focusing on improving the productivity of government institutions which will inturn ensure high salaries for its bureaucrats. Any attempt to put artificial caps on pay packages in the private sector will be counter productive as it will result in brain drain and flight of capital from this country