SEBI proposes new corporate governance norms for listed companies
04 Jan 2013
The Securities and Exchange Board of India (SEBI) has proposed a new set of corporate governance norms for listed companies, which seek to empower minority shareholders, act as checks on unjustifiable pay hikes for CEO as also an orderly succession planning.
In a discussion paper released today, the market regulator also proposed hefty penalties for non-compliance.
SEBI also proposed a new concept of 'Corporate Governance Rating' by independent agencies as also regular inspection by SEBI and stock exchanges to monitor level of compliance by the listed companies.
SEBI has suggested improved oversight by and on independent directors and a performance-based salary structure for CEOS and other top officials.
''On average, the remuneration paid to CEOs in certain Indian companies are far higher than the remuneration received by their foreign counterparts and there is no justification available to that effect,'' SEBI pointed out.
SEBI also proposed that listed companies mandatorily disclose the amount paid as remuneration to each of their directors and their median staff.
