Thursday, January 11, 2007

Celebrate rising executive pay in India!!

Mr T T Ram Mohan , an IIM professor comments on the soaring packages at the IIMs being pretty much part of the India growth story!
There are good reasons to celebrate rising executive pay in India.
-It shows that companies are doing well enough to be able to pay more.

-It is bound to lift wages in the economy in general.

-There are signs that it has stemmed and even reversed the flight of talent from India.
Above all, it marks the coming of age of the knowledge worker in the Indian economy. When an IIM graduate can command a crore of rupees, it means that the returns to intellectual capital today can be as great as those to physical capital.

In the first wave after liberalisation, entrepreneurs in the Indian economy made huge fortunes on the strength of their intellectual capital and overtook the titans of manufacturing.
This is the second wave where risk-averse employees can hope to have incomes one had associated only with owners of physical capital.
For those of while still deciding to make the plunge, it is the time now for returning to India!!

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