About 70 per cent of Indian business leaders are of the opinion that shareholders should have greater say in setting the remuneration policy for senior executives at large public companies. And 78 per cent believe that senior executives are paid too much, according to a global survey of 2,800 businesses in 40 countries.

More than three-quarters of those surveyed said that public companies should disclose the remuneration policy and individual remuneration of executive and non-executive directors. Some 86 per cent said that the roles of CEO and Chairman of the board be held by different people to ensure greater oversight.

The survey was conducted by Experian in May-June 2012 as part of the Grant Thornton International Business Report. In India, around 100 businesses participated in this survey.

Vinamra Shastri, Partner and Practice Leader, Business Advisory Services at Grant Thornton, said: “The results clearly illustrate the growing caution that shareholders are demonstrating when it comes to how their money is being spent, and by whom.

“In light of executive mismanagement of finances, and negligence of shareholder interest, there is an inevitable and often outspoken demand for greater transparency.”

A resounding 89 per cent expressed that executive remuneration at public companies should be closely linked to performance targets. With regard to Indian executives being paid “too much”, Shastri said the proportion of family-owned and family managed businesses is larger in India.

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