India rules out executive remuneration cap

The decision on whether to cap the remuneration of Indian executives will not be taken by the government.

According to Salman Khurshid, minister of state for corporate affairs, the public sector will not set limits on the compensation packages of the Asian country's senior executives as this is a decision primarily for shareholders.

This announcement was made ahead of the implementation of the impending Companies Bill, which aims to improve the accountability and risk management of India's corporate landscape.

Mr Khurshid explained that investors must decide whether they want to remunerate "top minds" for running their company's affairs through a process of self-governance.

He said: "We do believe in essential freedoms in a democracy. The ultimate decision on managerial remuneration should rest with the shareholders."

Earlier this month, Mr Khurshid said that increased transparency is required on behalf of the country's companies if shareholders are to decide the levels of executive remuneration.