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Sunday, July 6, 2008

CEOs

Did you ever think, why any product or service is so costly ? In all the expenses companies try to find cheaper alternatives even at compromise in qualities of products or services (to some extent) except expenses for advertisement and salary to CEOs.

Advertisement expenses are useful to make public aware of the products or services but not to the extent corporates are doing it. For many products, advertisement is just a trap for consumers, which encourages them to buy the products or services which they do not need or not at least at the price company offers. Do you know new use of bike ? It is used to impress girls. (advertisement says so).

But, here I will like to talk about salary that is paid to CEO of a corporate. After getting huge amount of salary, one's duty will be to get more and more and more business for the company at any cost and they do it honestly, too. That means they also try to trap the consumers. They actually think and manage to get more business, but in my opinion, the persons actually working in field to get the business as per plan of CEOs, should also get sufficient salary.

Now let's us check salary of top CEOs in India.

  • Mukesh Ambani, Reliance Industries, 44.02 Crore annually.
  • P R Ramsubrahmanaiya, Madras Cement, 24.00 Crore annually.
  • Kalanidhi Maran, Sun TV, 23.62 Crore annually.
  • Sunil Bharti Mittal, Bharti Airtel, 15.00 Crore annually.
  • K Anji Reddy, Dr. Reddy's Laboratories, 14.04 Crore annually.
  • Brijmohan Munjal, Hero Honda, 13.99 Crore annually.
  • Pawan Munjal, Hero Honda, 13.88 Crore annually.
  • Naveen Jindal, Jindal Steel, 13.50 Crore annually.
  • Pankaj Patel, Cadilla Health, 12.43 Crore annually.

Before few years salary of a CEO was not more than 3 Crore annually.

It surely counts towards cost of the product and this is why it is so costly. Why do not they go for cheaper alternatives.

But all CEOs must see if all the employees of the company are getting enough salary or not. Success of a CEO depends on the employees of the company.

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