Indian parliament considers chief executive remuneration proposal

India's minster of state for corporate affairs and minority affairs has revealed that the country's parliament is considering a proposal which would see shareholders decide the salary packages of the country's chief executives.

Salman Khurshid said that while the policy was not included in the Companies Bill 2009, it had been put before the parliamentary standing committee.

If passed into law, the initiative will provide shareholders with the necessary authority to decide the pay of their company's chief executive, although how this will work in practice has yet to be decided.

However, Mr Khurshid, who has held the post of corporate affairs minister since May this year, said increased transparency on the behalf of companies is something which would need to be achieved.

"Shareholders should be able to take the decision with freedom, rationality, information and there should be enough disclosures to enable them to take a free and transparent decision," he said.

The minister added that he believed there was a worldwide consensus on the need to move towards salary restrictions.