Wanted:CEOs…Price: Crores

There is a big change coming over our corporate world. And the biggest beneficiaries of this change are high-fly CEOs, for whom life could not be better. Big companies in India are queuing up to offer them packages they had never dreamt of 2-3 years ago. Chief Executive Officer hunting for jobs is passé. This trend also explains why these topnotch executives wear an I-don’t-care attitude, as they know that if they leave their present companies, there will be scores of them rolling out red carpet and bending backwards to rope them in. This changed corporate scenario has been captured in the latest cover story (by Ketan Mistry) in Chitralekha.

The story implies that what was once known as loyalty is an obsolete concept today, as when one executive leaves the company, his departure triggers a near exodus of topnotch executives whom he takes away with him. The recent example is that of Star TV, where a whole team deserted the company to join NDTV Imagine. We are informed that some sectors like media, Retail, Telecom are in constant demand for experienced executives whom they entice to join with what is called sign-on bonus and other tempting perks. Incidentally, sign-on bonus is a lump sum amount offered to executives on the day they join. And the amount runs into lacs.

Experienced people who have done this job-hopping aver that one should not stick around in jobs one does not enjoy doing, only for money. Of course, with power comes responsibility. And companies who pay their senior most employees such hefty packages know how to extract more than adequate output from them.  However, just a couple of years back, an annual package of Rs 3 crore was unthinkable, but no longer so. Recently Reliance started the trend of offering their front liners close to Rs 4 crore annually. And now even salary of Rs 5 crore is no longer an eye-popping figure. And mind you, this figure is not inclusive of other attractive perks. 

It might sound paradoxical but while taking such expensive CEOs, companies do not take their competence into account, opines a renowned Research agency. However, executives’ worth is determined by whether in the long run he succeeds in enhancing the value of the company. Sometimes, if the CEO sought by rival companies is reluctant to join, rival companies stage a coup by taking over the companies he works in. So they get company plus the CEO in the bargain. The article reveals that the recent example is that of Vikam Pandit, who has been roped in by the Citi Group after taking over his company. Now Vikarm Pandit heads a staff comprising about 3 lac employees the world over.

But as the saying goes, there is no free lunch. So similarly these high packages bring along with it high tension and deadline to perform. Otherwise, they have to perish. Companies would not mind paying crores if they get in return more than what they pay for. Indra Nooyi, the latest CEO of Pepsi is getting Rs 1 crore per month plus perquisites. But she has been able to perform. 

The whole picture sounds very rosy and sweet till someone strikes a note of caution bordering on pessimism. What if recession strikes? everything will suddenly turn bleak and grim. Those who are used to seeing good things in life will find it difficult to take it in their stride.

But why worry about it now? Make most of it as long as things are favourable. And CEOs are competent enough to make a killing when chips are up.

The Field Marshal is no more

Field Marshal Manekshaw, the ’71-warhero, has recently passed away at the age of 94. He fought death the way he combated with his enemies during his active days. The ever-witty man will be remembered for more reasons than one. Chitralekha has a reason to feel sad as the publication has some fond memories of the great army man, who was gracious enough to attend its silver jubilee function some decades ago. And it was a sheer stroke of coincidence that while Chitralekha was celebrating its golden jubilee function, there was a chance meeting with the Field Marshal at the venue. He did remember the event 25 years ago. IN his charming way, he promised to attend the diamond jubilee function of the publication. But before we can celebrate the event next year, we hear that our dear Sam has passed away. We will miss you, sir..!

In this obituary (by Kanti Bhatt), the author traces the history of this man, who was responsible for changing the map of our continent.    

American soldier worshipping Hindu God in Iraq

His name is Colonel John, Captain Mark, Major Harry and Sergeant Parthsarthy Das. You found the last name intriguing, right? This is a curious story (by Samir Paleja), who tells us about this American soldier who does not reveal his real name for security reasons.  Posted in Iraq, Parthsarthy Das gives an email interview wherein he reveals that he is going to take out famous Lord Jagannath Yatra on the streets of strife-torn Baghdad. He got very ecstatic when he got permission from his High command for taking out Lord Jagannath chariot.

Parthsarthy is basically an American Jew, who got drawn towards the Krishna Consciousness Movement from very early age. His father used to say that at the age of six, Parthsarthy would dance in his home chanting Krishna..Krishna. Later, he got initiated and became an official disciple of Iscon where he was christened Parthsarthy, as is the tradition of Iscon. Since then this American soldier has been worshipping Krishna with total devotion.

It is a unique story that makes for an engaging read.

What is the Nuclear Deal?      

There are two sets of people; one is in favour of India signing the Nuclear Treaty with America. The other set is dead against this deal, like leftists whose refusal to toe the government’s line has precipitated a grave crisis endangering the survival of the government. But nobody is discussing what the ruckus is all about. Nobody is explaining what the treaty is all about and why there is hullabaloo over it. The article (by Nagindas Sangvi) explains in details as to the nitty-gritty of the deal in question-answer format so that everybody knows what it is. After reading the article, even a layman would be able to form an informed opinion whether we should go with the deal or scrap it.

There are other articles in the issue, which are also equally interesting. Besides, there are usual Political and Humour columns, Cardiogram, Priyadarshini section, Gujarat Diary, new chapter of serialized novel, Health Helpline, Jalsagar and Mukhwas.

Ishita’s Elchi

Do you wish to make investment? Instead of investing in known companies, invest in Inflation and Price Rise. They always keep going up..!!