Why India Inc's CEOs Are Overpaid?

Emerging Economies against the Older Economies

India is considered as one of the emerging economies that is growing faster but they have a very small group of senior executives who are equipped to take the leadership roles. Whereas, in the other economies like United States and United Kingdom have a good supply of experienced executives.

Anuranjita Kumar, HR head, Citi India, who relocated herself from Mumbai to Citibank’s London office, told The Economic Times, “Those economies have a great pool of seasoned executives - but with fewer opportunities where are they supposed to go? In comparison, in India, which yet remains a world of opportunities, it is often a challenge to find seasoned executives especially at senior levels. Citi India has benefited from this trend with overseas talent moving back to head critical functions.”

In the developed nations the top talents can be hired at a discount but in emerging economies like India the salary is always directed to an upward growth. In case of the new economy sectors like telecom and health-care services which are new and have grown in a short span, face the salary problem while hiring top talent from outside the industry to manage the organisation.