Managerial Remuneration in India: Of Changing Guidelines, Fatter Pay Packets, and Incentives to Performance

Management & Accounting Research, Forthcoming

24 Pages Posted: 30 May 2006

See all articles by Ram Kumar Kakani

Ram Kumar Kakani

Lal Bahadur Shastri National Academy of Administration (LBSNAA)

Pranabesh Ray

XLRI Jamshedpur

Abstract

In this study, we look into the changes made in Indian corporate laws regarding managerial remuneration. We also evaluate the effect of these changes on corporate performance. Based on the comparison of corporate performance data of 16 large Indian manufacturing firms vis-à-vis their managerial remuneration data, it is concluded that managerial remuneration has significantly increased over the last two decades in sharp contrast to corporate financial performance (both from efficiency and growth point of view). Questions have been raised whether such increase in managerial remuneration was at all justified.

Keywords: remuneration, top management, compensation, performance pay, Indian corporate law, financial performance, incentives

JEL Classification: M52, K20, N65

Suggested Citation

Kakani, Ram Kumar and Ray, Pranabesh, Managerial Remuneration in India: Of Changing Guidelines, Fatter Pay Packets, and Incentives to Performance. Management & Accounting Research, Forthcoming, Available at SSRN: https://ssrn.com/abstract=905108

Ram Kumar Kakani (Contact Author)

Lal Bahadur Shastri National Academy of Administration (LBSNAA) ( email )

Mussorie, Uttarakhand 248179
India

Pranabesh Ray

XLRI Jamshedpur ( email )

C H Area (E)
Jamshedpur, Jharkhand 831001
India

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