tag:blogger.com,1999:blog-18601284.post9087423533646640948..comments2009-10-11T21:41:51.615+05:30Deepak Shenoyhttp://www.blogger.com/profile/04209677935830502120noreply@blogger.comBlogger11125tag:blogger.com,1999:blog-18601284.post-14850470984965850422009-10-11T21:41:51.615+05:302009-10-11T21:41:51.615+05:30Thakur: If you replace Anil or Mukesh and get external CEOs you will have to pay them at least that much money. Rs. 50 cr. or $10 million salary (including bonus) for Mukesh, who generates rs 20,000 cr. or $4 billion in profits? THat would be silly to deny. Anil generates about 10,000 cr and gets about the same - still very little as a percentage.<br /><br />Dividends are a waste of money - they are double taxed (ddt is 15%) for one. Then there is the fact that the money might be used for acquisitions, for growth funding and so on, only if there is no growth opp then the company shoudl give big dividends. Small shareholders have the prerogative to sell if they don&#39;t get dividend. <br /><br />Narayan Murthy or Azim Premji no longer manage the cos full time, but the CEO salaries in these companies are low (if they were to induct non promoter CEOS they would definitely need to pay them more)<br /><br />And why don&#39;t you complain about the fact that Infy doesn&#39;t give enough dividend? It is sitting with over 10K crores in it&#39;s bank account, doing nothing with it - not acquiring, not growing much. For the last four years!Deepak Shenoyhttp://www.blogger.com/profile/04209677935830502120noreply@blogger.comtag:blogger.com,1999:blog-18601284.post-62850915441831253132009-10-11T19:36:15.161+05:302009-10-11T19:36:15.161+05:30I fully agree with you and with all other comments on this post, about the hypocrisy and double standards of our politicians. But, can you justify the 44 crores paid to Mukesh Ambani when he gets dividends on the shares he owns? Similarly, I read Anil Ambani getting roughly 52 crores from his group companies.Does their inputs justify such huge compensation? Does Narayan Murthy or Nandan Nilenkani or Aziz Premji draw so much?<br />Let them declare increased dividends which at least all minority shareholders will also get besides institutional investors, even if their holding is largest.<br />ttthakurttthakurhttp://www.blogger.com/profile/08100753177362553751noreply@blogger.comtag:blogger.com,1999:blog-18601284.post-81725312540223385022009-10-10T00:37:14.044+05:302009-10-10T00:37:14.044+05:30Ah, a fellow FSM Believer. You made my day.<br /><br />I&#39;ll add to what you said about US CEO compensation. US made noises about it only when Government had bailed out the companies with multi-billion dollar money supply. By that money, the US Government has, in a way, bought the company and any CEO bonus is in fact public money. About public money, as you noted, austerity is necessary.<br /><br />Moreover, if the company <b>needed</b> such huge &quot;loans&quot; from US government, they cannot exactly be termed good performing CEOs. In spite of such a humongous failure in doing their job they got huge bonus out of public money. Any anger against this is completely justified.Bingonoreply@blogger.comtag:blogger.com,1999:blog-18601284.post-11269398665651090902009-10-09T08:32:19.555+05:302009-10-09T08:32:19.555+05:30Not just govt bungalows , they call themselves gandhiwadi but promote the elitist vip culture gandhi hated, and to keep up with diktat politics they enter economy class fly business class read the toi today <br />``some&#39;&#39; ministers and MPs insisted on an upgrade — that is seats in business class — after boarding the aircraft on economy tickets. <br />Some VVIPs, the Indian Commercial Pilots Association (ICPA) complained, even ``forcibly occupy seats in J (business) class&#39;&#39;. <br /><br />Well u can call it dbl standards but this is an old trick used by congress<br />Sonias broad policy apes Indira and Baba is being systematically groomed for the gaddi.Pnoreply@blogger.comtag:blogger.com,1999:blog-18601284.post-6088547552389340122009-10-08T12:01:35.022+05:302009-10-08T12:01:35.022+05:30Its not double standards, rather lack of ideas and failure to implement good governance practices. Nothing has been done to remove endemic corruption and improve efficiencies, hence all this austerity and other measures. But then this is the bane of Indian politics regardless of the party in power.Kamalhttp://www.blogger.com/profile/00488521208057559313noreply@blogger.comtag:blogger.com,1999:blog-18601284.post-32482852416437882502009-10-07T23:16:38.572+05:302009-10-07T23:16:38.572+05:30One more jab from the Minister! Take that India Inc. CEOs!! http://economictimes.indiatimes.com/News/News-By-Company/Corporate-Trends/Now-Khurshid-wants-Indian-CEOs-to-lead-simple-life/articleshow/5090959.cmsGaneshhttp://www.mygraffitipage.in/noreply@blogger.comtag:blogger.com,1999:blog-18601284.post-13597649652428499452009-10-06T12:27:27.651+05:302009-10-06T12:27:27.651+05:30Cannt agree more with what you have said. <br /><br />It is display of sheer stupidity of our honorable ministers that they are not able to figure out, that US govt. wants to control compensation of those organizations to which govt. has bailed out. i.e It is the people&#39;s money meant for the survival of the organization and given by govt. They are not talking about private companies which are doing good.<br /><br />And what about the vulgar assets of our politicians! Should not just donate their declared assets say beyond 50L (Let us call it vulgar asset beyond 50L). I cannt figure how our humble politicians make such huge assets without even proper source of income! <br /><br />Congress and politicians keep away from hard earned money of hard working people. You are neither democratic, socialist or capitalist. <br /><br />Only word I can think of is this policy is &quot;anarchic&quot; in nature ....Raghuhttp://www.blogger.com/profile/15404837001505614370noreply@blogger.comtag:blogger.com,1999:blog-18601284.post-10783826597215006662009-10-06T11:30:19.930+05:302009-10-06T11:30:19.930+05:30Indian Government Stimulus is basically for wasteful expenditure of Ministers and Babus, it is not for infrastructure or stimulating real economy. That job is left to Entrepreuners and International Investors. Very clever strategy indeed.<br /><br />MKAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-18601284.post-78807530302744311092009-10-06T09:20:00.604+05:302009-10-06T09:20:00.604+05:30You don&#39;t have to be sorry for calling a spade a spade.BRShttp://www.blogger.com/profile/04283784965283776876noreply@blogger.comtag:blogger.com,1999:blog-18601284.post-67011465845988707912009-10-06T08:45:01.862+05:302009-10-06T08:45:01.862+05:30Very well researched piece.<br /><br />1) Austerity applies only to the government because it lives off tax payer money. Austerity does not apply to citizens who earn their own living, and hence are free to choose what to do with their money.<br /><br />2) Also, if one takes the austerity argument too far then the country will slip into recession, as opposed to coming out of it. In fact during recessions, the rich should actually be encouraged to spend and live ostentatiously!<br /><br />3) CEO pay: If the government clamps down on it, companies can pay out huge dividends and make sure that the CEO is still well compensated (if the CEO is also a promoter and has a big shareholding).<br /><br />Either way, it appears that Salman Khurshed is just making some sycophantic noises that resonate with 10 Janpath. Also my guess is he wants to be on TV, like his colleague Kapil Sibal who keeps announcing ill informed education reforms just to keep the news media chattering.<br /><br />~mkAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-18601284.post-64497781527181108662009-10-06T02:25:45.546+05:302009-10-06T02:25:45.546+05:30same feelings here Deepak.<br />Isnt that a communist tone in Congress? <br />Rip the rich and lure the poor.<br />Bugger me, Even Shashi Tharoor tweeted sometime back naively asking if theres any corruption happening in MEA or alike?<br />Logic is the key what you say.<br /><br />May be Congress wants to increase the hafta from corporates so whinging about their salaries.Siddharthnoreply@blogger.com