Category: Business

Panel to Decide CEO’s Salaries

A key parliamentary panel wants the government to make it mandatory for the boards of companies to have a committee specifically tasked with determining the salaries of key managerial personnel, in a recommendation that seems to have been shaped by the growing unease over the stratospheric salaries drawn by CEOs.
The recommendation is part of a cluster of suggestions Parliament’s standing committee on finance has made in response to the Companies Bill, 2009. This seeks to replace the Companies Act, 1956.
The panel, headed by former finance minister Yashwant Sinha, also said that the liabilities of independent directors should be distinguished from those of full-time directors.

Marks & Spencer Bans Gurgaon Plant

After a British weekly’s revelation that a Gurgaon-based factory used by British retail major Marks & Spencer was abusing its workers, the company has stopped placing orders with the factory.
However, M&S said it had stopped placing order with Viva Global in Gurgaon for commercial reasons.
Details of the working conditions in the The Viva Global factory were mentioned in an expose conducted by The Observer in August. These included allegedly paying workers as little as 26 pence an hour and forcing them to work excessive overtime. It denies that workers have suffered intimidation, the leading weekly reported today.

RBI Governor Gets Less Salary Than Other Bankers

In an irony of sorts, RBI gets to approve salaries of all the top-level bankers in the country, but the central bank’s top officials themselves get less than 5 per cent of what is paid to the bank chiefs.
According to a study, the RBI Governor D Subbarao’s total remuneration is less than that paid to heads of not only private sector banks in the country, but even from the public sector even though licenses to carry on business is issued to these banks by the RBI Governor.
The difference in the salaries is quite huge where in some cases bank heads are earning nearly 20 times what the RBI Governor is paid.

Exports Grew by 13.2%

Exports from India grew by 13.2 per cent to touch US$ 16.25 billion in July this year, as compared to corresponding figures of last year. However, imports too have risen...

Maruti Suzuki Sales Up By 24%

Maruti Suzuki, the country’s biggest car manufacturer recorded its highest ever monthly sales in the month of August 2010 by selling 1,04,791 vehicles thereby registering a 23.85 per cent jump.
Last year sales figures for the same month were 84,808 units, Maruti Suzuki India (MSI) said in a statement.

It was the third time in this fiscal that the company’s monthly sales figure has crossed one lakh mark. MSI had reported its highest ever monthly sales at 1,02,175 units in May, the first time when the company had crossed the one lakh units in monthly sales.

ONGC Flexing Muscle over Cairn Deal

Oil and Natural Gas Commission that was caught completely off guard with Cairn Energy Plc’s decision to sell up to 51 per cent of its stake in Cairn India to Vedanta Resources which is promoted by Anil Agarwal, has now told Scottish explorers that the deal cannot go through without its consent.
ONGC holds 30 per cent stake in Cairn India’s Rajasthan oilfields which is the main asset of the company in India. In a letter addressed to Cairn Energy Plc CEO Bill Gammell,

Prime Focus board approves stock split

The board of directors of Prime Focus at its meeting held on Aug. 27, 2010 has considered and approved the stock split of equity shares from face value of Rs 10 each to Rs 1 per equity share (that is 10 equity shares of Re 1 shall be issued in lieu of one equity share of Rs 10 each), subject to approval of members in the ensuing general meeting.
The board has considered and approved issue of 10,00,000 warrants, convertible into equity shares in one or more trenches, on preferential basis to promoters and/or promoter group, at a price which will be determined as per SEBI (ICDR) Regulations and other applicable laws and subject to approval of members in the ensuing general meeting.

Will Blackberry continue in India?

India’s BlackBerry users are holding their breath as they wait to see if the government carries out a threat this week to ban encrypted messages sent on the phones due to fears of misuse by militants.
The government, worried that militants could use BlackBerry’s heavily encrypted services to plan attacks, warned earlier this month it would start blocking emails and instant messages sent on the smartphones unless the company comes up with a way for security agencies to decode the traffic by August 31.
There were indications late last week the deadline might be pushed back beyond Tuesday’s deadline as BlackBerry’s Canadian makers, Research in Motion (RIM), scrambled to satisfy the authorities.