CEOs Salary and Generational Vision

The Prime Minister in his inimitable style seemed to have set the media on fire. Just one match stick was enough... At the annual general meeting of a large employers' body Dr Singh, among other things, mentioned that CEOs should check their own salaries and generally refrain from conspicuous consumption.

Since then I have read at least three CEOs from three generations all connected directly or indirectly with the employers' association mentioned, come up with typically generational answers: CEO in mid fifties India Chairman of a top consulting firm: 70 per cent agrees with PM 30 per cent disagrees in a national daily. CEO/promoter of a telecom giant just enterning his 50s; 55 per cent disagree and 45 per cent agree with the PM's views again on a national daily. CEO/Promoter of a tech company in his early 40s, competely disagrees with the PM and calls it a demand and supply situation. if there are better schools and colleges training better CEOs and ensuring their steady supply the cost of hiring them will go down, this was in a blog.

All complicated arguments to drive home a simple point to the Prime Minister who is a very 1960s honest man, like many of our fathers. Just to digress a bit and profile such a man. No income outside salary. if you were in government, low salary and low tax, in private sector high salary and 90 per cent tax [if you do not believe me ask any CEO of private sector company in the 1960s]. Only people who made money were doctors and lawyers [but their income too was limited by the poor paying capacity of their clients and a doctor's fee was anything between 2 and 10 Rs and they played the volumes game those days]. What was the mindset of such men. They were brought up in the nehruvian tradition of nation building, sacrifice before consumption. The biggest social achievement then was to show others how much you have sacrificed. Cars were not needed, air conditioners were almost a sin, eating out was waste of money etc.

Great men these were, but at the end of their generation they left behnd a divided and inequitable society and to be fair to them some of them like the Prime Minister himself realised that this model had failed to deliver and consciously chose to move on to another direction that of economic freedom and liberalisation... creating a generation of people like us who now look like frankenstiens eating into the nation's entrails by those who created us.

In this debate neither side is wrong. These are two different ways of looking at things: While the PM looks at the 2000s with his prism of 1960s [not sure how to handle it] the generation of 1980s and 1990s looks at it through their own prism [agains not too sure how to handle it].

To get back to the point. What were the CEOs in their own generational way trying to tell the Prime Minister. I think two things: a) there is a generational gap in thinking and perceiving reality. Please let our generation run the show. You have handed over businesses to us, now handover the politics and economics of the country so that we get a chance to show how it is run in the new regime. b) Economic prosperity is not percolating not because of excessive freedom of privileged classes, but because of lack of freedom of non-privileged classes and non-privileged sectors like agriculture. c) please do not behave like Indian crabs by pulling down those that are going up in life.

I was was in positive awe of my father, his honesty, hardwork for a PSU, commitment, sacrifice, simple lifestyle. But never really bought into his philisophy. Like millions others of my generation. And as I grew older and had a stronger voice did not fail to mention to him at times that a) if he had taken care of himself he would have ensured a much better life for his family [I really do not know how much better since I and my sibling and my mother are doing pretty well in life:)] b) my generation has no human heros: self success is the only hero always looking for a new heroine: money.

Jai Hind