Big divide between CEO salaries and the rest

There is a clear surge in CEO compensation as evident from the BT-Aon Hewitt Executive Compensation report for 2011/12.

However, there are also some worrying signs. In another study on pay disparity, Aon Hewitt has highlighted the clear divide in the salaries of the rich and the poor.

India, says the study, has the most skewed salaries in the world. The minimum wage of an unskilled worker is 822 times lower than that of a CEO. And the minimum wage of a graduate is 675 times lower, says the report.

"We have kept our salary scales at the entry level under check with only a 10-12 per cent increase over the last five years. This is because of attrition and increased hiring from campuses," says Sandeep Chaudhary, Partner, Compensation Consulting, Aon Hewitt. "Why isn't the same trend seen at middle and senior management levels, where the increase is 35 per cent and 60 per cent, respectively?"

Many companies have not groomed internal talent and built a leadership pipeline that would reduce lateral hiring. This has kept salaries under check.

In an interview with Business Today , Infosys Chairman Emeritus N.R. Narayana Murthy said: "Compensating a CEO excessively is not a great idea. At Infosys, the salary of the CEO is about 20 to 22 times that of the salary of the lowest professional."