New Delhi, Sept. 22 (PTI): In a major overhaul of corporate governance norms, Sebi will soon put in place stringent checks against unjustifiable CEO salaries at listed companies and ask them to adopt a whistle-blower policy to protect the employees exposing any wrongdoing by the top management.
The market regulator will soon make necessary changes in its framework for the listing agreement and other regulations that every company needs to follow with regard to corporate governance practices after becoming a listed entity, a senior official said.
Sebi had sought comments from the general public and other stakeholders earlier this year for a major overhaul of corporate governance norms. The new companies act has also proposed various measures in this regard.
Some of the proposed measures include greater powers to minority shareholders, an orderly succession planning and hefty penalties for non-compliance to model corporate governance practices and related norms.
On executive pay, Sebi will ask the companies to provide a ratio of the top management’s remuneration and the median staff salary.