Title: Study of executive compensation of public and private sector enterprises in India - impact on corporate governance

Authors: I. Sridhar

Addresses: Indian Institute of Management Indore, Prabandh Shikhar, Rau Pithampur Road, Indore, 453556, Madhya Pradesh, India

Abstract: Executive compensation in India is strictly legislated and regulated. The purpose of this paper is to evaluate the executive compensation between private and public sector companies in the NIFTY 50 Index companies after the implementation of corporate governance reforms in India. This study is important because the Government of India is doing business using taxpayers money in owning and managing public sector companies, thus it is incumbent that these public sector companies are run efficiently and effectively. The study establishes that companies in the private sector pay significantly high executive compensation than that of companies in the public sector in terms of CEO pay and total executive pay thereby impacting corporate governance in India. An implication of this study is that it establishes huge gaps in executive compensation in the Indian corporate landscape, thus, posing challenges to governance of public sector companies in India. It makes a case for governance reforms in terms of executive compensation for top management of public sector companies.

Keywords: corporate governance; CEO pay; total executive pay; public sector governance.

DOI: 10.1504/IJPSPM.2021.114042

International Journal of Public Sector Performance Management, 2021 Vol.7 No.2, pp.236 - 249

Received: 05 Jan 2019
Accepted: 01 Apr 2019
Published online: 08 Apr 2021 *

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