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April 12, 2001
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Money > Business Headlines > Report April 12, 2001 |
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IT pros can now look up to Rs 7.5-mn pay chequesPuja Mehra The department of company affairs has decided to hike the ceiling for managerial remuneration for IT companies to Rs 7.5 million per annum, as against the current ceiling of Rs 2.4 million applicable to all companies. Top government officials said, "A notification to this effect will be issued soon which will specify separate guidelines for the payment of managerial remuneration for IT companies." The development follows various representations made before the law, justice & company affairs minister Arun Jaitley by heads of top IT companies who argued for the hike in remuneration limits given the nature of the knowledge industry where retention of skilled manpower was vital. Infosys chairman N R Narayana Murthy was one of those had written to the minister seeking more flexible and softer guidelines for fixing compensation to employees in his company, the officials said. IT companies face stiff competition from overseas companies for recruitment of managers and the current salary levels leave enough scope for deep pocket multinationals to poach talent from Indian companies. "We lose out on retaining our best brains within India since foreign software companies can offer pay packages matching global salary levels," the corporates said in their representation to the ministry. Depending on the effective capital of a company, the department specifies the maximum remuneration permitted for the company's managerial personnel, including whole-time directors and managing directors. The limits vary from Rs 900,000 a year to Rs 2.4 million a year for companies with effective capital less than Rs 10 million to over Rs 1 billion. The various slabs of effective capital, in the case of IT companies, has been retained with the remuneration payable being raised in each slab in the ratio 75:24. Powered by ALSO READ:
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