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Author(s) : Dr Dipak Kumar Bhattacharyya ISSN : 0974 - 497 Year : November 2020 | Volume : 14 | Issue : 2/4 Abstract: Executive compensation issue is one of the areas of concern for shareholders’ in India. Apart from high pay inequity in terms of median pay difference between the executives and non-executives; on executive compensation, we have also issue like gender pay gap. Shareholders in India today can exercise their voting power for or against executive compensation, as new Companies Act today require companies to disclose executive compensation details in proxy note. Other than executive compensation issues, also in India, we find shareholders are influencing decisions on diversity in board, issues on re-appointment of directors, terms of stock options, environment issues, etc. All these are happening despite we do not have any Dodd Frank in India. Rising shareholders’ activism in India are attributable to regulatory and institutional support, and for proxy advisory firms. Proxy advisory firms’ can recommend their paid members (mostly institutional shareholders) to exercise their voting power either for or against the executive compensation, based on their analysis. They even make their basis of analysis transparent, so that shareholders’ can make an informed choice. However, recent filing of a defamation suit against a proxy advisory firm in India by century old company is likely to gag the spirit of corporate governance. This paper examines important issues on executive compensation, regulatory and institutional frameworks, and role of proxy advisory firms. Download File Download File Open File