Top jobs in India's bureaucracy just became a bit more lucrative with Cabinet approval for salary increases recommended by the Seventh Central Pay Commission, but they're still no match for what corner-office occupants of private companies are paid. The Cabinet Secretary, the government's top civil servant, will now draw Rs 2.5 lakh a month.
In comparison, the chief executive officer in a Rs 1,000 crore company will get a "minimum Rs 10 lakh a month and this could easily go up to Rs 25 lakh a month," said R Suresh, managing director of RGF Executive Search. To be sure, bureaucrats get benefits such as bungalows with gardeners and security guards in central DELHI, among others. Comparisons are only of basic pay and exclude perks.
"The lure of the top IAS (Indian Administrative Service) jobs goes beyond money. It is a highly prestigious opportunity where you are part of decision-making at a much macro level and creating a social impact," said a former IAS officer who did not wish to be identified. "There is a stark difference from the private sector, keeping in mind that bureaucrats manage much bigger assets for the government.
However, bureaucrats get several perquisites such as housing in prime location, travel, medical, pension, which even private sector CEOs get, but that zamindari style is not there," said Suresh of RGF Executive Search. However, he said that with huge salaries comes big pressure. In the private sector you have to be at the cutting edge of things all the time. The pressure to perform and project that you are performing is very high, he added.
According to a study by the Indian Institute of Management, Ahmedabad, commissioned by the Seventh Pay Commission, compensation of a CEO is positively related to profit. The study said that compensation strategies of companies and their ability to pay are also influenced by factors such as its prospects in the market and assessments by prospective employees of its viability and success.
The IIM Ahmedabad report suggested the government has to be highest paymaster for roles that are important to society, the nation or have long-term value. Besides, it mentioned that pay commissions review emoluments once in adecade but corrective action may be required more frequently. "Private sector pay was low till the 1980s, but post liberalisation, compensation has taken off significantly, increasing more than 10-fold in 25 years," said K Sudarshan, managing partner at EMA Partners, executive search firm.
Source:-The Economic Times
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