Grandson Moves UP.........

Grandson Moves UP.........page 3, The Economic Times, 13th August 2012.

Most Listed Companies decide to reward themselves viz: The Board of Directors and Managers as they think fit. A simple circular and a resolution is passed at the AGM.

Firstly it must be understood that the Company is a single entity.The Management and Workers are not in a Us....Vs...Them situation. All are working towards a common goal, of producing a superior product. All are expected to contribute their best towards this effort.

If all are contributing, then the rewards must also be shared by all in a defined proportion.

It is not anybody's right to exploit another- be it shareholder or worker. Once the output of all are defined, and their share in the Pie, then there can never be a bad situation. The solution therefore is about the receivables in any industry or situation. Currently the max perks are received at the top and the crumbs picked off the floor at the bottom of the pyramid. This is a misconceived notion that it is the top alone that deserves the credit for success. Success can be achieved when every player in the game plays his part and contributes to the targeted goal. We need to create a winning situation and a prosperous society where everyone who contributes gets rewarded. Let us assume these are the different levels in an industry.

Chairman & Managing Director,(10x)
CEO,(9x)
Manager,(7.2x)
Divisional In Charge,(6x)
Foreman,(4x)
Supervisor, (2.5x)
workers (1x)

If say x=Rs 10,000, then the CMD gets max Rs 1 Lakh. Once this definition is accepted / legislated, then in a given industry if the CMD thinks he deserves more, he has to ensure the value of x at the ground level in his organization changes. This one act will create a healthy environment within the organization, and within society.