Govt not to regulate CEO pay

The ministry of corporate affairs said on Monday there is no move on the government's part to regulate salaries and other benefits given to directors and chief executives of companies.

"There is no intention on the part of the government to regulate remuneration of directors and top executives of companies," Corporate Affairs Minister Prem Chand Gupta said at a seminar on corporate governance organised by Assocham in New Delhi. 

Prime Minister Manmohan Singh's comments at an industry function on remuneration of directors

and chief executive officers in the private sector have not been understood properly.

Don't show off wealth, pay back to society: PM

"There is no need to regulate remuneration of directors and CEOs of companies and there is no intention to do so," Gupta said.

The decision on how much salaries top functionaries of the companies get is best left to their board of directors and shareholders, he said.