{"id":55303,"date":"2017-05-17T16:39:07","date_gmt":"2017-05-17T11:09:07","guid":{"rendered":"http:\/\/www.vskills.in\/certification\/tutorial\/?p=55303"},"modified":"2024-04-12T14:20:21","modified_gmt":"2024-04-12T08:50:21","slug":"compensation-comparison-historical-perspective","status":"publish","type":"page","link":"https:\/\/www.vskills.in\/certification\/tutorial\/compensation-comparison-historical-perspective\/","title":{"rendered":"Compensation Comparison &#038; Historical Perspective"},"content":{"rendered":"\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><a ref=\"magnificPopup\" href=\"https:\/\/www.vskills.in\/certification\/tutorial\/wp-content\/uploads\/2020\/12\/Certified-Selenium-Professional-65.png\"><img loading=\"lazy\" decoding=\"async\" width=\"750\" height=\"400\" src=\"https:\/\/www.vskills.in\/certification\/tutorial\/wp-content\/uploads\/2020\/12\/Certified-Selenium-Professional-65.png\" alt=\"Compensation Comparison &amp; Historical Perspective\" class=\"wp-image-95676\" srcset=\"https:\/\/www.vskills.in\/certification\/tutorial\/wp-content\/uploads\/2020\/12\/Certified-Selenium-Professional-65.png 750w, https:\/\/www.vskills.in\/certification\/tutorial\/wp-content\/uploads\/2020\/12\/Certified-Selenium-Professional-65-300x160.png 300w\" sizes=\"auto, (max-width: 750px) 100vw, 750px\" \/><\/a><\/figure><\/div>\n\n\n<p>\u00a0<\/p>\n<h2><strong>Compensation Comparison &amp; Historical Perspective<\/strong><\/h2>\n<p>Let&#8217;s learn more about compensation comparison and historical perspective relating to it.<\/p>\n<h3><strong>Compensation Comparison<\/strong><\/h3>\n<ul>\n<li>USA is a market leader in top managerial compensation<\/li>\n<li>CEO and top managerial salaries in India have climbed but are puny in comparison to the global standards<\/li>\n<li>Both globally and nationally, CEO pay has increased way ahead of sales and other employee wages<\/li>\n<li>Both globally and nationally, Corporate performance not kept pace with CEO pay increase<\/li>\n<\/ul>\n<h3><strong>Historical Perspective: in India<\/strong><\/h3>\n<ul>\n<li>In 1980s, restrictions on managerial compensation resulted in complete erosion of earnings at senior and middle levels (Companies Act 1956)<\/li>\n<li>Resulted in Chief Executives looking for better options abroad<\/li>\n<li>In 1988 restrictions on directors\u2018 salaries were raised to INR 15,000\/-pm under Section 269, Companies Act, 1956, Schedule XIII<\/li>\n<\/ul>\n<ul>\n<li>In 1993, revision of Schedule XIII by the Government. Director\u2018s Salary limit raised to INR 50,000\/- pm plus commission equal to annual salary<\/li>\n<li>Perks could be drawn equal to annual salary or INR 4,50,000\/- pa whichever was less<\/li>\n<li>Overall limit of INR 10,50,000\/- pm including perquisites was kept<\/li>\n<li>1990s was a tumultuous period for Executive compensation<\/li>\n<li>Salaries were low, stable and predictable<\/li>\n<li>Legal ceilings existed on remuneration (salary and commissions) of directors<\/li>\n<li>Ceilings designed keeping in mind government officials &#8211; Bureaucratic structure- relationship with performance of business was non-existent<\/li>\n<li>Post liberalization and globalization, the trend reversed<\/li>\n<li>Mega bucks for the chief executives from 1991 onwards<\/li>\n<li>Inflation<\/li>\n<li>Demand for competent, talented grew but supply did not match<\/li>\n<li>MNCs recruited high quality manpower or their global operations at comparatively lower rates<\/li>\n<li>Indian family owned companies had to match the remuneration offered by MNCs<\/li>\n<li>Complex compensation structure (allowances, benefits included) against high tax structure<\/li>\n<li>Wide differences industry \u2013 wise in salary levels due to demand and supply trends, profitability, growth rate etc<\/li>\n<li>1980s was boom period for advertising<\/li>\n<li>Early 1990s \u2013 for financial services<\/li>\n<li>Late 1990s \u2013 petrochemical, IT, power, insurance<\/li>\n<li>2000 \u2013 IT and telecom, biotechnology<\/li>\n<li>Revision of salaries for government officials in 1996 &amp; PSU employees in 1997 had a spiraling effect<\/li>\n<li>The % increase in chief executive salaries was not the same as those of the junior level employees.<\/li>\n<\/ul>\n<p><a href=\"https:\/\/www.vskills.in\/practice\/payroll-manager\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-95472 aligncenter\" src=\"https:\/\/www.vskills.in\/certification\/tutorial\/wp-content\/uploads\/2020\/12\/Certified-Export-Import-Foreign-Trade-Professional-75.png\" alt=\"certified payroll manager free practice test\" width=\"960\" height=\"150\" srcset=\"https:\/\/www.vskills.in\/certification\/tutorial\/wp-content\/uploads\/2020\/12\/Certified-Export-Import-Foreign-Trade-Professional-75.png 960w, https:\/\/www.vskills.in\/certification\/tutorial\/wp-content\/uploads\/2020\/12\/Certified-Export-Import-Foreign-Trade-Professional-75-300x47.png 300w\" sizes=\"auto, (max-width: 960px) 100vw, 960px\" \/><\/a><\/p>\n\n\n<p><a href=\"https:\/\/www.vskills.in\/certification\/tutorial\/certified-payroll-manager\/\" target=\"_blank\" rel=\"noreferrer noopener\">Go back to Tutorial<\/a>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; <a href=\"https:\/\/www.vskills.in\/certification\/payroll-manager-certification\" target=\"_blank\" rel=\"noreferrer noopener\">Go to Home Page<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u00a0 Compensation Comparison &amp; Historical Perspective Let&#8217;s learn more about compensation comparison and historical perspective relating to it. Compensation Comparison USA is a market leader in top managerial compensation CEO and top managerial salaries in India have climbed but are puny in comparison to the global standards Both globally and nationally, CEO pay has increased&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"categories":[6326,14],"tags":[],"class_list":["post-55303","page","type-page","status-publish","hentry","category-payroll","category-human-resources"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Compensation Comparison &amp; Historical Perspective<\/title>\n<meta name=\"description\" content=\"Compensation Comparison - USA is a market leader in top managerial compensatio - CEO and top managerial salaries in India have climbed but are puny in...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.vskills.in\/certification\/tutorial\/compensation-comparison-historical-perspective\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Compensation Comparison &amp; Historical Perspective\" \/>\n<meta property=\"og:description\" content=\"Compensation Comparison - 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