The problems seem to be not ending for Naveen Jindal, the promoter-chairman of Jindal Steel & Power Ltd (JSPL). After a lot of irking on coal block allocation, a fresh trouble has resurfaced for India's top-paid executive.
A media report has claimed that Jindal is the highest paid executive in the country with a package of Rs 73.42 crore, 25 times higher than the pay of the next highest paid director, Vikrant Gujral.
Opposition this unethical remuneration policy, an advisory firm led by a former SEBI director JN Gupta has decided to reach out to institutional shareholders to restrict Naveen Jindal from deciding his own salary.
Speaking with the media, JN Gupta said, "The proposal to empower the promoter-chairman of Jindal Steel & Power Ltd (JSPL) to revise the remuneration of all whole-time directors will be put before the company's shareholders at its annual general meeting on Wednesday."
"The entire remuneration policy of the company is opaque...The resolution can lead to a conflict of interest situation," he added.
As per company law, the corporate governance guidelines recommend that remuneration payable to directors should be decided by a remuneration committee of the board. In the absence of the committee, the board should decide such remunerations.
The issue came in light just in time when the government and financial services regulators are planning to impose restrictions on salaries of senior executives. It would be interesting to see what will be the outcome of annual general meeting to be held on Wednesday.