Monetary Ceilings of Salaries for the Corporate Sector including CEOS and CFOS

There are no monetary ceilings of salaries laid down in the Companies Act,1956 for personnel serving in the corporate sector including CEOs, CFOs and Directors thereof. Giving this information in written reply to a question in the Rajya Sabha today, Shri Sachin Pilot, Minister of Corporate Affairs, said that the only ceiling that is laid down in section 198 of the Act is to the effect that the total remuneration “payable by a public company or a private company which is a subsidiary of a public company, to its directors and its manager shall not exceed eleven percent of the net profit of that company for that financial year”. Therefore, the Ministry of Corporate Affairs does not maintain details of salaries payable to personnel of companies at any level.

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