Using the internet, find the annual salary of the CEO of any company of your choosing....

Using the internet, find the annual salary of the CEO of any company of your choosing.

Do you believe the CEO of the company you chose is being compensated for being an excellent manager?
Do you feel that this salary is fair, or that the salary should be higher or lower? Why?
If you were the CEO of company, how much would you think is a fair salary, and what would be your philosophy in compensating your employees?

Expert Solution

The salary of India's Avenue Supermart Ltd CEO Navil Noronha as per their last filing is approx 45 crores approx(58835325 USD)

As per the Indian market and the standards applied it is an average CEO salary in the specific industry.However with ESOP his valuation comes to around 3100 crores(405309500 USD).

The CEO is being compensated for operating in a challenging industry with very low margins and high operating costs and recurring expenditure.Ensuring the smooth flow would need the services of an excellent strategic management resource hence I believe he is being compensated for the same.

The salary is tad higher (approx 20%) considering the average salary of executive level in the same firm is 1/3rd of the same and the risk return ratio.However the said CEO keeps a low profile and has propelled the growth of the brand in a fashion wherein when the stock of the said company got listed it made many millionaires out of average entry level executives

If I were the CEO of a company I would keep it entirely revenue oriented .With the above CEO his salary should be in the range of 36-38 crores .My philosophy will be based on three principles : Leadership,Talent & Tenure.If you look at any of them they are actually related for one to be fairly compensated by the firm.

jeff jeffy answered 2 years ago

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