An Analytical Study on Executive Compensation with a Particular Focus on Selected Indian Companies

Abstract

Executives (managers) in any organisation are the live wires. They cannot be treated as yet another employee. They play a vital role in all management functions such as planning, organisation, directing, coordinating and controlling. India is one of the third world countries with a rapid growing economy, and in particular India is endorsed to be rich in human capital. To mention a few, the world best doctors and engineers are known to be made from India. However, recent researchers on compensation have revealed that most Indian best talents they are not happy with their compensation package. Given such conditions, it became imperative to conduct an analytical study on Executive compensation with a particular focus on selected companies in India. The primary objective of this study therefore was to find out the means of compensating executives which are currently implemented within the 5 selected Indian companies; understand how executive remuneration affects their performance; identify and study the arising gaps in executive compensation; understand why Indian executives are leaving to other countries; and to look into preventative measures to limit the exodus to other companies. The study was undertaken as a freelance research for the period of six weeks at the following selected companies; Tata Bp Solar limited Company, Wipro, Infosys and HDFC Indian bank. DOI: 10.5901/mjss.2014.v5n23p591