Dear All, Request you to share information how can the salary of top employees like VP / VP / CFO can be structured, so that they can get most of the tax benefit..?? Regards, Deepak Pawar
From India, Mumbai
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6From India, Mumbai
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Here's an interesting article I came across:
Executive compensation has always been fairly opaque and inscrutable in India and most parts of Asia. Organizations have rarely been open to sharing executive compensation data beyond what regulators mandate. However, valid and reliable executive compensation data are critical for organizations. Much of this article is based on the results of Aon Hewitt's Executive Compensation survey conducted in over 60 leading organizations across industries.
Compensation for employees who have the highest impact on defining and implementing an organization's strategy is usually classified as executive compensation. Typically, this includes the top two layers within an organization's management hierarchy. The two main areas of discourse around executive compensation have been the structure of the compensation package and the amount of pay being delivered to these executives, often comparing it with pay at other levels within the organization.
In the midst of scrutiny, there has been a significant increase in the analysis of executive compensation in recent years. This is partly due to the larger paychecks awarded to executives and the link drawn between executive compensation and the recession.
Discussion surrounding executive compensation dates back to Plato's time when he suggested that a community's highest wage should not exceed five times its lowest. By the early 20th century, the banking community had increased this number to at least 20 times. Public scrutiny of executive compensation emerged after the First World War when railroad companies were nationalized in the US, exposing significant compensation paid to senior executives. The Securities and Exchange Commission was established in the US post the Great Depression, setting guidelines for disclosing executive pay, which are now the basis for global disclosure norms.
Early discussions on executive compensation in India can be traced back to Kautilya's Arthashastra, emphasizing governance in compensation decisions for top officials. Since the early 1990s, differentiated executive compensation has become more prominent in India. The focus and discussion on executive compensation have become integral to business management and governance in recent years.
The article also delves into the current perspective on executive compensation in India, highlighting a shift towards a significant disparity in compensation levels across different organizational roles. The study shows a trend where pay for professional CEOs in India frequently exceeds USD 1 million annually. The variation in pay levels by industry and the mix of fixed and variable elements in compensation structures are also explored.
Overall, the discussion on executive compensation emphasizes the evolving nature of compensation structures globally and the need for organizations to align executive pay with long-term business success.
[Source: Total Rewards Special: Decoding Executive Compensation By Anandorup Ghose]
From India, New Delhi
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Executive compensation has always been fairly opaque and inscrutable in India and most parts of Asia. Organizations have rarely been open to sharing executive compensation data beyond what regulators mandate. However, valid and reliable executive compensation data are critical for organizations. Much of this article is based on the results of Aon Hewitt's Executive Compensation survey conducted in over 60 leading organizations across industries.
Compensation for employees who have the highest impact on defining and implementing an organization's strategy is usually classified as executive compensation. Typically, this includes the top two layers within an organization's management hierarchy. The two main areas of discourse around executive compensation have been the structure of the compensation package and the amount of pay being delivered to these executives, often comparing it with pay at other levels within the organization.
In the midst of scrutiny, there has been a significant increase in the analysis of executive compensation in recent years. This is partly due to the larger paychecks awarded to executives and the link drawn between executive compensation and the recession.
Discussion surrounding executive compensation dates back to Plato's time when he suggested that a community's highest wage should not exceed five times its lowest. By the early 20th century, the banking community had increased this number to at least 20 times. Public scrutiny of executive compensation emerged after the First World War when railroad companies were nationalized in the US, exposing significant compensation paid to senior executives. The Securities and Exchange Commission was established in the US post the Great Depression, setting guidelines for disclosing executive pay, which are now the basis for global disclosure norms.
Early discussions on executive compensation in India can be traced back to Kautilya's Arthashastra, emphasizing governance in compensation decisions for top officials. Since the early 1990s, differentiated executive compensation has become more prominent in India. The focus and discussion on executive compensation have become integral to business management and governance in recent years.
The article also delves into the current perspective on executive compensation in India, highlighting a shift towards a significant disparity in compensation levels across different organizational roles. The study shows a trend where pay for professional CEOs in India frequently exceeds USD 1 million annually. The variation in pay levels by industry and the mix of fixed and variable elements in compensation structures are also explored.
Overall, the discussion on executive compensation emphasizes the evolving nature of compensation structures globally and the need for organizations to align executive pay with long-term business success.
[Source: Total Rewards Special: Decoding Executive Compensation By Anandorup Ghose]
From India, New Delhi
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Varies from country to country dependant on the laws. However, to maximize on tax benefits, you may consider a split, where A = Fixed salary of say 60% of the total package and B = 40% converted into non-taxable perks like holiday travel, school/university fees for 'x' number of children, use of company house, non-contributory share options schemes, and other subsidies.
Regards,
Gertrude
From Zimbabwe, Harare
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Regards,
Gertrude
From Zimbabwe, Harare
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