Search+Intelligent InvestingSynopsisCompanies pay money to the people who run them, and these are often the same people who influence how much they should get. Does this number deserve more attention than it usually receives? Are there laws to properly govern managerial pay? Are these laws being bent? And where does this bending exactly show up in the annual report? It's worth decoding.A company reports a loss. Cash flow is weak. Lenders are waiting. Yet its top executive receives crores in salary, allowances and incentives. Is that illegal? Not really.Indian law allows a company to pay its managers even when profits are inadequate. But there are aspects which need attention. A large auto company reported a loss of more than Rs. 4,000 crore. Its managerial remuneration crossed the limit allowed under the law by Rs. 12 crore. ETMarkets.com 26 mins readAug 01, 2026, 09:29:00 AM ISTGift this Story to your friendsFONT SIZEAbcSmallAbcMediumAbcLargeSAVEPRINTCOMMENTContinue reading with one of these options:Limited AccessFreeLogin to get access to some exclusive stories & personalised newslettersLogin NowUnlimited AccessStarting @ Rs120/monthGet access to exclusive stories, expert opinions & in-depth stock reportsSubscribe NowETUh-oh! This is an exclusive story available for selected readers only.Worry not. You’re just a step away.What’s Included withETPrime Membership