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Ramesh Ranjan posted an update
5 months ago (edited)
Its time for Compensation of Employees to be made Open
With an annual compensation of $22.56 million (approximately Rs 186 crore), Ravi Kumar’s impressive salary contrasts sharply with the lower compensation offered to fresh graduates, fueling the ongoing debate about income disparity within the company
Starbucks CEO Brian Niccol flies a corporate jet 1,600 km daily to commute from his California home to the company’s Seattle office. His contract requires him to work in the Seattle office at least three days a week and the front end customer associate gets paid only 12$ per hour.
These examples set the context for the ongoing discussion on pay disparity, particularly when executive compensation appears disproportionate to the broader workforce’s wages.
This raises the critical question: should compensation be open and transparent to the public, or remain confidential? Transparency could foster accountability, ensuring that CEO pay aligns with company performance and societal expectations. It would also address growing concerns about income inequality. On the other hand, confidentiality is often maintained to protect privacy and competitive business strategies. Striking a balance is essential, especially when executive salaries are juxtaposed against layoffs, minimal wage increases, and other cost-cutting measures that primarily affect lower-tier employees.
Should Employee Compensation in Organisation be Transparent and Open or should it remain Confidential?
