Date:02/06/2007 URL: http://www.thehindubusinessline.com/2007/06/02/stories/2007060202710300.htm

Back `Let market forces decide salaries'

Our Bureau

New Delhi, June 1

Close on the heels of the Prime Minister expressing concern over high salaries paid by corporates to its CEOs, members of industry chamber Assocham have called for absolute non-intervention of policy makers on the issue. At the chamber's managing committee meeting in Mumbai, in which 150 executives participated, consensus emerged that the salaries and perks in the private sector be decided by the market forces. The meeting was attended by officials of corporates such as Tatas, Birlas, Reliance, Videocon, Jindals, Nicolas Piramal, DLF, ONGC, HPCL, Hindustan Lever, Power Finance Corporation Ltd and BPCL. The members also felt that retention of CEOs, especially in the present times, could be possible only with higher packages.