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Rajat:As people are losing jobs, should not the government provide some working capital to companies to help save jobs. Or the companies could send their employees on study leave for some relevant courses and take them back after a year or two. This will help them in the long run.

Harish Bijoor: Rajat, I do not believe the government must park its tax-payers funds in private sector efforts. On study leave, that is a good one.

Arun:Companies does like to invest their profit, but not share with employees. Companies w'ont give job guarantee, pay guarantee, but they will get the work from us like anything. I need to ask onething what is the difference between permanent and Contract Employees? Any time if company wants us to go out , then we have to. If they can give job guarantee then they can cut the pay. If a Company gives pay cut for an employee, after few months he/she seeks another job or company may lay off them. If they go to another company what kind of hike will they get? If they will be laid off then, what will happen for their experience? Are companies going to accept the realy story? Never right? Do we know how much profit companies are earning? But simply they will say cost cutting.

Harish Bijoor: Arun, High growth, high risk. Some sectors in the Indian job market have taken to a policy of high remuneration levels. These sectors have typically been in the private sector. IT, ITES, Bio-tech, Retail and Telecom have led the way in the high salary stakes over the last eight years. In contrast, the Public sector has maintained sane levels of remuneration. The Private sector is therefore high growth on salaries. And most certainly high risk. The Public sector has been relatively low growth on salaries. And is low risk. I do believe you need to read the answer ot your question in my reply above.

Rajat:With the slowdown and job losses across industries, should not the salaries of CEOs earning in crores be cut but 20-25 percent and some jobs saved. What your view?

Harish Bijoor: Rajat, Interesting suggestion. Let's take the CEO pay of an Indian company. From the retail sector for a start. If the pay inclusive of perks is INR 3 Crores. A 25% cut would mean a saving of INR 75 lakhs. This kind of saving can save 15 jobs!

Anand Sequeira:Indian corporates should take a leaf from the USA and do some serious soul searching to find out if money is being spent on acquiring luxuries or on things to keep the business running. What is your take on this Harish ?

Harish Bijoor: Anand, You are right. But then , the definition of luxury itself changes with CEO after CEO and corporate after corporate. A Corporate jet, which was a luxury five years ago, is being viewed as an item of necessity for the busy CEO who hates to wait at commercial airports.

Sudarsan:Is it feasible to allocate huge funds to Executive officers, higher management officials in private sector? In some case, i feel simply they take money doing nothing.

Harish Bijoor: Sudarsan, I will not agree in a sweeping manner on what you say. I do believe there are some CEOs in private sector organisations who actually take home what they deserve. Corporate Boards ensure equity here. Privately owned companies where the CEO is largely the proprietor, take home packages that are at time rather obscene. Here, some norm needs to be defined. Particularly in the case of CEO's who share profit of the enterpirise throrgh other vehicles.

gouri:don't you think indian companies lack good model of corporate governance anyway? ethics and code of conduct is poor in indian cos. this is what i feel. what is your take?

Harish Bijoor: Gouri, I agree with you. Corporate Governance has been a big buzz-word among Indian corporate organisations. It has remained a buzz-word. Its actual practice is far from perfect. Percolation of good corporate governance norms is rather paper-led than practice-led. This needs to be sorted out.

Vaibhav :Hi Harish..think it would be more viable if CEO'S cut down on perks like super expensive hotel suites and first class travel rather than pay cuts..salaries are..fancy hotel stays and limo pick up's on the tarmac are not and well best kept aside in times as these..do you agree?

Harish Bijoor: Vaibhav, CEOs must go easy on their own pay hikes, their perquisites, their bonuses, and their ESOP plans as well. Both seen perquisistes and un-seen ones need to be rationalised. I do believe every employee within a Corporate enterprise should have the right to information to transparently see and comment upon the CEO's pay and perk. One needs to press, under Corporate Governance norms and laws, for a Corporate RTI Act in itself. Something packed with integrity and transparency as the basic norm of foundation.

a.c.bohra:It was really a nice and heart warming move when Mr. Kalyani suggested 20% pay cut in his own salary. It means that India is getting ready for the economic meltdown and many more CEOs must follow the steps of Mr. Kalyani. Personally speaking, I think its a move worth following. What are your views about it?

Harish Bijoor: Mr.Bohra, I agree. The CEO sets the example. He bites the bullet first. Always a great thing to do. The US market has however seen the reverse tendency. And therefore Mr.Obama has reacted. Rightly so!

Arun: If they get better turnover, Will they give better hike?

Harish Bijoor: Arun, A good Corporate enterprise is one which relates bonuses and pay-hikes to actual achievement of the Corporate enterprise. Linking pay hikes and cuts to the industry at large is not a great thing to do. One must relate cuts to company achievement or company lack of achievement. This way, you do not set hollow standards.

Vinay:Yes , Definitely If the Employee have have a pay cut the same rule should be apply for the CEO!!!!!!!! It Like a Sports Team if the team win then the captain Takes the credit and if the team Loss then the Whole Team is held Responsible

Harish Bijoor: Vinay, You are absolutely right. The CEO is the captain of the ship of Corporate enterprise. The CEO needs to take a cut for sure. He should be the first one to volunteer a cut. And guess what, setting a good example would be to take the biggest cut himself. Staircases cannot be cleaned bottom-up. You start the clean up top-down. Examples need to be set at the top.

Chat Master

Harish Bijoor

Brand-expert & CEO, Harish Bijoor Consults Inc

Harish Bijoor is a brand domain specialist operating out of Bangalore. His unique boutique consulting outfit, Harish Bijoor Consults Inc., also has offices in Hong Kong, Seattle, London and Dubai.