Random Thoughts

What's wrong if Infy bosses take huge bonuses?

Hangama kyon hain barpa;
thodi si jo pilee hain;
daka to nahi dala;
chori to nahi ki hain!!...

There has been a huge hue and cry of late over the top management of Infosys taking big bonuses home during the last fiscal. The critics see it as some kind of ‘capitalistic’ evil act at a time when the company is cutting workforce and freezing salaries on the back of the economic slowdown.

Sometimes I feel a larger chunk of educated people in this country have gathered a scornful feeling about Infy and its top brass over the years. The reasons for this can be myriad like just being jealous of how ‘stupid looking scholarly’ CEOs of the IT bigwigs could build such a big fortune without creating any legal hustles as created by other big industrialists or that feeling of ‘sour grapes’ among the graduates who somehow missed the train to riches that passed through the Silicon Valley. There are also a few skeptics who have a strong doubt over the financial health of these companies. The last feeling can be attributed to the ‘once bitten and twice shy’ human tendency post Satyam scam.

Looking from a typical economic perspective, there doesn’t seem to be a reason for critics to feel bad if the management is making big money after delivering what they were supposed to. The company is still profitable and has enviable liquidity. It has reported good numbers in last fiscal despite tough times.

So what's the matter if the management reaps benefits? It is way better compared to the top execs of GM and troubled financial companies in the West who continued to get good bonuses despite poor performance.

Talking about reduction in workforce, it is ok if employees leave the company whenever they feel like but it's not ok if the company chops headcount if environment is turbulent; isn't this hypocritical? Companies run to make profit and in that process they may provide or take away employment, what's the big deal? Moreover, just look at the tech and finance companies in the West, which have so far chopped millions of employees. In comparison, Indian IT biggies have still maintained their course.

Labels: Corporations

posted by Ranjit @ 7/28/2009 12:22:00 pm