Is the CEO 400 times more important than you?

 

Image credit: http://s3.amazonaws.com/corpwatch.org/img/original/6-25-CEO-Pay.jpg

 

This is no secret.

The leaders of most of the top 100 Indian corporations make at least Rs 10 million per month, plus annual bonus. Leaders who have the ability to run a major corporation deserve to be compensated well. But talented executives are not that rare.

On the other hand, the average salary of a worker in these same corporations is less than Rs 25,000 per month. This is a mockery of the role all the workers in making the organization buzz. Or is it tick? Hum is probably what I have in mind.

To think of it, even in the United States, CEOs make 300 times the salaries of their workers.

What is worse than mockery? Disdain. That’s how many rank and file people feel they are being treated. Corporate boards would do well to heed the rumblings of rank and file workers. Those with high values do. One, two, three….Are there any more?

Defenders of generous leader pay packages justify the quantum by comparing them(selves) to cricket superstars and Bollywood icons. Are we comparing apples with oranges? These superstars have peaked to top performance within a shorter life-cyle.

The irony of this is that we’re in the land of Mahatma Gandhi.

What do you think? What is a more equitable method of compensation for our CEOs today?

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*The MADE IN INDIA tiger is a creative representation of the idea behind becoming a manufacturing behemoth in the global markets. Any resemblance to any other logo, is purely unintentional.

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About Suresh Lulla

Suresh Lulla established Qimpro Consultants Pvt. Ltd. in 1987 as a focused quality management consultancy based on The Juran Trilogy: quality planning, quality control, and quality improvement. Since inception, Qimpro has saved Indian corporates over Rs 20,000 crores in terms of cost of poor quality, using the Juran methodologies. In 1989, Mr Lulla established Qimpro Convention as a culmination of a quality improvement competition for the QualTech Prize. Currently, there are three parallel competitions - improvement, innovation, and sustainability in the manufacturing, services, and healthcare sectors. Areas of Specialization • Problem Solving • Process Excellence • Performance Excellence • Benchmarking Best Practices Author Mr Lulla has authored 'World-Class Quality: An Executive Handbook' published by Tata McGraw- Hill (2003). Quality Fables In 2014, Mr Lulla released Quality Fables. Unlike Aesop's Fables, these 25 fables are not based on fiction and/or animals. They are based on real experiences and involve real people. Each is a short narrative making a significant point. Recognition In 2004, Mr Lulla was awarded the IMC Juran Centennial Medal for his pioneering contribution to quality practices in India. In 2005, Mr Lulla was awarded the Distinguished Alumnus Award by the Indian Institute of Technology, Bombay in recognition of his outstanding achievements in Quality Management Consultancy. In 2006, the Institute of Management Consultants of India conferred on Mr Lulla the award of Fellow Member. Professional Bodies • Chairman, IMC Quality Awards Committee - IMC Ramkrishna Bajaj National Quality Award; IMC Juran Medal • Director - Membership Retention and Engagement, Global Benchmarking Network
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