Thursday, October 11, 2012

Kingfisher airlines is bankrupt but has 2nd highest paid CEO

If the CEO of a firm doubles his salary in a year's time, what would you attribute this increase in pay to? The profits of course isn't it? It's only logical to expect that a firm who has doubled its profits will have no qualms about granting a similar hike to its CEO. And thus, by the same logic, a firm where profits have been reduced by half, the CEO's take home should also suffer, isn't it? Well, let us tell you that this seems to happen only in the land of Utopia. For in the real world, some things are beyond the realms of logic.

Take the salary of the CEO of the troubled airline Kingfisher Airlines. The word has it that his salary almost doubled in FY12 from what he took home the previous year. And all this despite the firm falling deeper and deeper into a financial mess. What more, the king of good times is not alone in this endeavour. Almost all the major airlines have rewarded their CEOs with an equally hefty pay rise.

We wonder what this would do to the morale of numerous employees in the industry. Forget pay rise, most of them have seen their pay checks ceasing to come in anymore. As far as we are concerned, well it gives us one more reason to defend our stand of not looking at this sector as a good investment candidate. 

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