There has been disquiet in the offices of asset management companies (AMCs) over the past week. The story began some months ago when the market regulator, Securities and Exchange Board of India (Sebi), proposed that AMCs disclose top management remuneration (salaries, perks, stock options). The first reaction within the industry was disbelief and then defiance—we will resist this, said AMC chief executives officers (CEOs) in private conversations last year. Despite some back-room conversations between Sebi and the industry, the market regulator went ahead and announced on 18 March 2016 (http://bit.ly/1W5JJZJ ) that AMC staff remuneration above a threshold of Rs.60 lakh must be disclosed from 1 May 2016. Why Rs.60 lakh? Because that is the threshold that other companies in India comply with.
Is mutual fund houses’ angst against pay disclosure fair?