I have been following very closely the controversy and the tussle between the CEO, Founder and the Board these last few days.I was quite startled when I read that the CEO of this micro finance company was being paid a salary of Rs 2 crores plus and this set me thinking.
Firstly, here's a company that's doing great work at the bottom of the pyramid and I am quite certain that all the employees of this company are working very hard at every level to ensure that the company, its employees and customers succeed. What will the employee down the line feel when he/she sees their CEO earn a 100 times, 200 times more than what they take home? When the company talks of team work and team spirit, how can one man be paid so disproportionately as compared to everyone else? Is he the only person who is contributing to the success of the company? If I was working for this organization, I would feel highly demotivated to know that my CEO earns in a month what would take me years?
What was happening in Wall Street is now coming to India - where organizations are rewarding a few people for short term quarterly results, instead of rewarding teams who focus on creating long term sustainable enterprises.And we know what happened!
Mr Narayanmurthy said it wisely when he stated that the highest level salary must be no more than 20 times that of the lowest paid employee in the organization.
I am proud that this is the equation in our company!
