The Hindu : Opinion / Letters to the Editor : PM's caution

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Wednesday, May 30, 2007
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Opinion - Letters to the Editor

PM's caution

Prime Minister Manmohan Singh's caution to industry on high levels of salaries to senior executives and promoters, which increase conspicuous consumption and can lead to social unrest, has come at the right time. The industry must take it in the right spirit and see what it can do to help. Most CEOs and promoters who earn in lakhs do not know what to do with the money. Conspicuous and unnecessary spending contributes significantly to price rise.

But the private sector that functions in a competitive set-up and is driven by profits is unlikely to go beyond symbolic gestures in addressing the concerns expressed by Dr. Singh. The creation of an inclusive society will continue to be the government's responsibility. The best way to do it is to provide quality education to all so that the less privileged can enter the corporate world as employees in future.

K.K. Ammannaya,
Udupi

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The fact that the appeal came from a Prime Minister is understandable. But the fact that an economist could talk in favour of a cut in executive pay shows that his ideology has been changing over time. High pay packages are incentives that recognise talent. These incentives promote further talent. By advocating a limit on incomes, the government is providing a disincentive and creating a negative environment.

Serious thought should be given to affirmative action for the economically weaker sections. Wealth accumulation strategies for the poor should be evolved so that their competitiveness in the free market improves.

Nagesh Vishnumurthy,
Bangalore

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Dr. Singh's remarks seem to have created a flutter in industry circles. Though no one can deny that the salaries paid to corporate managers are very high, they are paid only on the basis of performance.

Before pointing a finger at industry, the Prime Minister should reform the politicians by advising them to declare their true assets.

R. Baskar,
Salem

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