CEOs in India take salary cut to avoid job loss
By siliconindia   |   Wednesday, 11 February 2009, 23:45 IST   |    29 Comments
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CEOs in India take salary cut to avoid job loss
New Delhi: Continually daunted by the pink slips, the CEOs in India are setting examples to their peers in the West by opting for voluntary salary cuts without any rigid imposition from the firms to cap the payments. "At this time, businesses need cash, and we need to do our bit to ensure that," said Spice Chairman B K Modi. The salary cuts are accepted to stave off job losses and help the stretched finances. Bharat Forge Managing Director Baba Kalyani has taken a 20 percent salary cut after his company reported a consolidated loss of 36.56 crore in the third quarter which ended in December, reports The Economic Times. The route of cuts in the payment is adopted by many others who include Jet Airways CEO Wolfgang Schauer, NIIT CEO Vijay Thadani, the members of the Spice Group has created an 'Owners Club', which comprise of 18-20 CEOs and promoters. "We didn't do it because it looks nice, but it was essential for us to do it. People can't operate in their own space when the organization is struggling," said Thadani. At Infosys, the abiding principle is that leaders need to show the way before a general salary cut, where the variable bonus for its board members are slashed by as much as 40 percent in the second quarter, and there are plans to slash it further by 50 percent cut for the third quarter. The initiative is a learning ground for the executives in the West, they are resisting to forego bonuses and perks. Infact, President Barack Obama had to throw his weight to cap the salaries of the Wall Street bosses.

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