Chief Executive Officers: India, Investments and savings (personal): India

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This is a collection of articles archived for the excellence of their content.<br/>
 
This is a collection of articles archived for the excellence of their content.<br/>
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Additional information may please be sent as messages to the Facebook <br/>community, [http://www.facebook.com/Indpaedia Indpaedia.com]. All information used will be gratefully <br/>acknowledged in your name.
 
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=10 India-born CEOs of global technology giants=
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= India’s investable, personal wealth=
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[http://economictimes.indiatimes.com/slideshows/people/10-indian-origin-ceos-ruling-the-technology-industry/slideshow/53709335.cms ''The Times of India''], August 15, 2016
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==2017: India was no.11 in the world==
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[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F10%2F09&entity=Ar02413&sk=187C4BED&mode=text  India’s personal wealth may grow at 13%: Report, October 9, 2018: ''The Times of India'']
  
  
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''' 10 Indian-origin CEOs 'ruling' the technology industry '''
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The US leads the chart in terms of total personal wealth with $80 trillion in 2017, which is projected to touch $100 trillion by 2022. China is ranked second, with a total personal wealth of $21 trillion, which is expected to more than double to $43 trillion by 2022.
  
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Indians have played a key role in the success of technology powerhouses globally.
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The report noted that India constitutes the second largest pool of wealth from emerging markets in the coming years, with $2.2 billion. It is the fifth largest Asian market in number of affluent, high net worth, and ultra high net worth individuals. There were 322,000 affluents, 87,000 high net worth individuals and 4,000 ultra high net worth individuals in the country in 2017, according to the report. It observed that nearly 70% of the country’s personal financial wealth would be accessible to wealth managers in 2022.
  
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From Google to Microsoft, Cognizant to NetApp -- Indians run some of the world's biggest and best companies.
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The 70% investable wealth in the country includes listed equity, bonds, investment funds, currency and deposits, and other smaller asset classes, while 30% non-investable wealth includes life insurance and pensions, unlisted equity and other equity.
  
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Photocopying major Xerox has named Infosys veteran and former iGate CEO Ashok Vemuri as CEO of its back-office outsourcing company.
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=Investment in stock markets, banks, mutual funds, gold=
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==1995-2015==
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[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=A-20-year-long-journey-02112015022004 ''The Times of India''], Nov 02 2015
  
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Vemuri's elevation is another milestone for Indian-origin CEOs, of whom at least half a dozen are in Fortune 500 companies.
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Uma Shashikant
  
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==Sundar Pichai, Google==
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'''Much has changed in the way India invests since 1995, and mostly for the better'''
  
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India-born Sundar Pichai was named as Google CEO on August 10, 2015.
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Everyone is celebrating 20-year milestones these days. The nice thing about history is that we can attempt to explain the present by looking at the past, with the benefit of hindsight. What then seemed tough, foolish and difficult, seems pathbreaking today. Then there are things that do not change, ever. It's my turn to do the 20-year flashback this week.
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Stock markets
  
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The 44-year-old head of Google was born in Chennai, Tamil Nadu and pursued education at IIT Kharagpur (B Tech), Stanford (MS) and Wharton (MBA); at Wharton, he was named a Siebel Scholar and Palmer Scholar.
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In June 1994, a new wholesale market for debt was set up. Funded by institutions, it used the best satellite technologies and tried to create a market where institutions would buy and sell debt securities.But the debt markets in India were not ready for it. The leaders changed course and deployed the systems to create a new equity market. It wasn't easy .
  
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He is responsible for the launch of the dominant Chrome web browser, and was previously the product head for Android, Chrome, Maps, and other popular Google products.
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Equity markets were already being served by 20+ stock exchanges, the oldest and largest in the same city as the new one. The new market went ahead nevertheless, permitting trades in equity shares listed on other exchanges on its satellite-linked electronic system.
  
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==Shantanu Narayen, Adobe==
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In 1995, the experiment succeeded.The new market overtook the old in business. The National Stock Exchange (NSE) is an example of how a new entity can bring about positive change. How it can create a new system with higher efficiency , lower costs, wider participation, better technology and higher integrity .NSE modified how investors trade in India, creating a trading, clearing and settlement system on par with the best.
  
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Born in Hyderabad, Shantanu Narayen joined Adobe in 1998 as the senior vice president of worldwide product research and became the COO in 2005 and CEO in 2007.
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===Banks===
  
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He holds a Bachelor in Science from Osmania University, an MBA from University of California, Berkley, and an MS from Bowling Green State University.
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In January 1995, HDFC Bank opened its first branch in Mumbai. In March 1995, it offered shares to the public in an IPO priced at `10 per share, to mobilise `50 crore. The issue was oversubscribed 55 times and opened to trade at `40. The popular opinion was that the bank would soon merge with its illustrious parent.
  
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Narayen held product development roles at Apple and Silicon Graphics before co-founding photo-sharing startup Pictra. A chance encounter between Adobe and Pictra led to Narayen joining Adobe, where rose swiftly through the product ranks.
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All through the 1990s, public sector banks hogged the limelight for their equity offerings. No one gave private sector banks much of a bright prospect.
  
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He was named among the world's best CEOs by Barron's MAgazine in 2016.
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The PSU banks were well entrenched.They were bankers to the government and public entities. The cost of funds for the public sector banks was low, and the regulatory requirements was uniformly applicable to the new private banks too.If the new banks tried to bring in sophistication and technology , they had to face competition from foreign banks, that held a monopoly over the NRI and remittance businesses, apart from working with the large private corporate treasuries. Where was the room for new private banks?
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Twenty years on, private banks have built a new retail lending market that is large and growing. They have captured a large share of the institutional business. They offer superior technologies and service, and have managed to do so at a lower cost compared to their public sector counterparts, and have stronger, better and bigger balance sheets.
  
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==Satya Nadella, Microsoft==
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===Mutual Funds===
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After a 22-year stint with Microsoft, Nadella was appointed as the chief executive officer of the company in February 2014.
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If one looked at mutual funds in 1995, UTI dominated with over 90% market share.While the other players were trying to find their feet, UTI was launching a slew of monthly income plans (MIPs) which promised double digit returns. The other public sector mutual funds were suffering the consequences of faulty product launches in 1991-92. They had sold 7-year closed end equity funds, with the promise of doubling and tripling the returns, and the NAVs were nowhere near target.
  
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He previously held the position of executive vice president of Microsoft's Cloud and Enterprise group.
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The new private sector funds did their best to market their products, but did not mobilise much money from investors who were worried about the lack of liquidity . Mutual funds had to list on the market and it was common for prices to be lower than the NAV . Approvals were tough to get. Banks and institutions were not selling funds, yet.
  
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The Hyderabad-born 47-year-old has a BE from Manipal Institute of Technology, MS from University of Wisconsin-Milwaukee, and MBA from University of Chicago Booth School of Business.
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It was in 1995 the first wave of process innovation hit the mutual fund industry with open-ended funds with account statements and no certificates. Dividend and growth options were offered and banking distribution was tied up. But the struggle was with the idea of assured returns that investors clamoured after.
  
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==Sanjay Mehrotra, Sandisk==
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In 1995, when global investors were asking for depository and T+3 rolling settlement, what we had then seemed rudimentary . Today, the NSE has helped set up several stock markets across the world and is a model for risk management and settlement guarantees. In 1995, it seemed banking belonged to the public sector.Today , the success of private banks has established that PSU banks will have to restructure or fade away .
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Sanjay Mehrotra co-founded flash memory storage company SanDisk in 1988 and has been its CEO since January 2011.
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He pursued bachelors and masters degrees at University of California, Berkley, and also went to Stanford for executive programme. Mehrotra holds several patents to his name.
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As for mutual funds, there is enough evidence to establish that a diversified portfolio over the long run beats all other investment options. But investors seem busy trading stocks and investing in bank deposits, and not engaging enough with funds. The plague of new schemes sold with inflated promises and performing schemes staying in the background has not changed. Not in 20 years.
  
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==Sanjay Jha, Global Foundries==
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==2007-16==
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Sanjay Jha took over as CEO of Global Foundries, a semiconductor foundry that produces chips for giants like AMD, Broadcom, Qualcomm, and STMicroelectronics, in January 2014; before that he has served as the CEO of Motorola Mobility and COO of Qualcomm.
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[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=GOLD-OR-STOCKS-OR-MUTUAL-FUNDSBEST-TO-SPREAD-02022017032008 The Times of India], Feb 02 2017
  
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He joined Motorola as co-CEO in 2008, while serving simultaneously as CEO of Motorola's Mobile Devices Business.
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[[File: 1,3,5 and 10 year return, accoring to asset class, Jan 1 2016-Dec 31, 2016.jpg|1,3,5 and 10 year return, accoring to asset class, Jan 1 2016-Dec 31, 2016; [http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=GOLD-OR-STOCKS-OR-MUTUAL-FUNDSBEST-TO-SPREAD-02022017032008 The Times of India], Feb 02 2017|frame|500px]]
  
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Prior to Motorola, Sanjay held multiple senior engineering and executive positions during his 14 years with Qualcomm, ultimately serving as Executive Vice President and Chief Operating Officer (COO) of Qualcomm Inc. from 2006 to 2008.
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[[File: Steps to make one's career the best asset, 1-3.jpg|Steps to make one's career the best asset; [http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=WHY-CAREER-IS-YOUR-BIGGEST-ASSET-02022017013005 The Times of India], Feb 2, 2017|frame|500px]]
  
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Jha was born in Bhagalpur, Bihar and holds a BS from University of Liverpool and PhD from University of Strathclyde.
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[[File: Steps to make one's career the best asset2.jpg|Steps to make one's career the best asset2; [http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=WHY-CAREER-IS-YOUR-BIGGEST-ASSET-02022017013005 The Times of India], Feb 2, 2017|frame|500px]]
  
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==Rajeev Suri, Nokia==
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[[File: 10 rules for investment, how fast will one's money grow, a legal aspect.jpg|10 rules for investment, how fast will one's money grow, a legal aspect; [http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=GOLD-OR-STOCKS-OR-MUTUAL-FUNDSBEST-TO-SPREAD-02022017032008 The Times of India], Feb 02 2017|frame|500px]]
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Rajeev Suri joined Nokia in 1995 and held various positions before being appointed as president and CEO in April 2014.
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Suri's ascedancy to Nokia CEO's position came after Microsoft acquired Nokia's mobile phone business. Previously, he was the head of the company's global services.
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[[File: How fast will one's corpus erode, a legal aspect.jpg|How fast will one's corpus erode, a legal aspect; [http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=GOLD-OR-STOCKS-OR-MUTUAL-FUNDSBEST-TO-SPREAD-02022017032008 The Times of India], Feb 02 2017|frame|500px]]
  
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Like Satya Nadella, Suri also holds a B-Tech from Manipal Institute of Technology, but holds no post graduate degrees.
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[[File: Some other rules to take care of investment.jpg|Some other rules to take care of investment; [http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=GOLD-OR-STOCKS-OR-MUTUAL-FUNDSBEST-TO-SPREAD-02022017032008 The Times of India], Feb 02 2017|frame|500px]]
  
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==George Kurian, NetApp==
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[[File: How to consider oneself wealthy.jpg|How to consider oneself wealthy; [http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=GOLD-OR-STOCKS-OR-MUTUAL-FUNDSBEST-TO-SPREAD-02022017032008 The Times of India], Feb 02 2017|frame|500px]]
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George Kurian became the CEO and president of storage and data management company NetApp in June 2015, after serving as its executive vice president of product operations for nearly two years. Prior to joining NetApp, George was vice president and general manager of the Application Networking and Switching Technology Group at Cisco Systems.
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His diverse background also includes the role of vice president at Akamai Technologies, management consulting at McKinsey & Company, and leading Software Engineering and Product Management teams at Oracle Corporation.
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No one asset outperforms others consistently over time. In the past one year, equity mutual funds and government securities gave higher returns than other assets. Over 10 years, it's gold that beats all other asset classes. For consistent long-term gains, put your eggs in several baskets. Of course, returns is only one of the three criteria to look for before investing--safety and liquidity are the other two. Government securities, the safest investment option, matched returns from equity funds last year. But this is a rare occurence
  
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Born in Kottayam district, Kerala, he pursued engineering at IIT-Madras, but left six months later to join Princeton University; he also holds an MBA degree from Stanford.
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==2008, 2014-19==
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[[File: 2008, 2014-19- household savings in India.jpg| 2008, 2014-19: household savings in India <br/> From: [https://epaper.timesgroup.com/olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2020%2F02%2F02&entity=Ar00804&sk=9F1D85C0&mode=image  February 2, 2020: ''The Times of India'']|frame|500px]]
  
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==Francisco D’Souza, Cognizant==
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'''See graphic''':
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Among the youngest CEOs in the software services sector, D'Souza is Cognizant's CEO and a member of the company's board of directors.
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D'Souza joined Cognizant as a co-founder in 1994 and went on to become its CEO in the year 2007. During his tenure as CEO, Cognizant's employee base has grown from 55,000 to over 230,000.
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'' 2008, 2014-19: household savings in India ''
  
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The son of an Indian diplomat, D'Souza was born in Kenya. He holds a BBA from University of East Asia, Macau and an MBA from Carnegie Mellon University, Pittsburgh; D'Souza also serves on the board of General Electric as an independent director.
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[[Category:Economy-Industry-Resources|S
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INVESTMENTS AND SAVINGS (PERSONAL): INDIA]]
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[[Category:India|S
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INVESTMENTS AND SAVINGS (PERSONAL): INDIA]]
  
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==Dinesh Paliwal, Harman==
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==2011-18: household savings==
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Dinesh Paliwal is the president and CEO of Harman International, a premium audio gear brand that owns the likes of JBL, Becker, dbx, among others.
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[https://timesofindia.indiatimes.com/business/indias-household-financial-savings-at-a-new-high/articleshow/66875988.cms  India’s household financial savings at a new high, November 30, 2018: ''The Times of India'']
  
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Born in Agra, Uttar Pradesh, Paliwal holds a BE from IIT Roorkee, and MS and MBA from Miami University.
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[[File: 2011-18- household savings in India.jpg|2011-18: household savings in India <br/> From: [https://timesofindia.indiatimes.com/business/indias-household-financial-savings-at-a-new-high/articleshow/66875988.cms  India’s household financial savings at a new high, November 30, 2018: ''The Times of India'']|frame|500px]]
  
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Prior to joining Harman, he spent 22 years with ABB Group, where he last held the dual role of President of ABB Group with responsibility for the company's global P&L, and Chairman/CEO - ABB North America.
 
  
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He serves on the board of Bristol-Myers Squibb, and previously served as the economic advisor to the governor of China's Guangdong province for three years.
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The share of financial savings by Indian households has touched a high of 11.1% of gross national disposable income (GNDI). However, the share of deposits, which rose to a high of 6.3% on the back of demonetisation in 2016-17, has shrunk to 2.9% of GNDI. But households are borrowing much more, as reflected in the financial liabilities, which has grown to a high of 4%.  
  
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==Ashok Vemuri, Xerox Business Services LLC==
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==2016: FDs top==
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Xerox, the 110-year-old document technology company that over the years has come to symbolize everything associated with photocopying, named former iGate CEO Ashok Vemuri as the new CEO of its back-office outsourcing company.
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[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=FDs-most-preferred-saving-option-Survey-06042017019028  FDs most preferred saving option: Survey, April 6, 2017: The Times of India]
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[[File: Why households avoid equities.jpg|Why households avoid equities; [http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=FDs-most-preferred-saving-option-Survey-06042017019028  FDs most preferred saving option: Survey, April 6, 2017: The Times of India]|frame|500px]]
  
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Earlier this year, Xerox said that it would split into two separate companies -- one would focus on document technology, which would include Xerox's traditional printer and copier businesses, while the second company would focus on back-office outsourcing, payment processing and other technology-related services.
 
  
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A former Infosys veteran, Vemuri became CEO of Xerox's business process outsourcing company after the separation of the company's two entities.
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More than 95% households prefer to park their money in bank deposits, while less than 10% opt to invest in mutual funds or stocks. Life insurance was the second most preferred investment vehicle, followed by precious metals, post office savings instruments and real estate, a survey by Sebi showed. It also showed that mutual funds came in at the sixth place (9.7%), followed by stocks (8.1%), pension schemes, company deposits, debentures, derivatives and commodity futures (1%) as investment vehicles for the urban households. Respondents were allowed to select multiple options.
  
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==2020: Arvind Krishna, IBM, and an overview of CEOs==
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The survey , conducted across urban and rural areas of the country , showed that among rural households, not even 1% of the survey respondents were investors, while even the awareness about mutual funds and equities was dismal at just 1.4%.
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[https://epaper.timesgroup.com/olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIM%2F2020%2F02%2F01&entity=Ar00511&sk=751C2682&mode=text  Krishna to lead IBM, joins club of global Indian CEOs, February 1, 2020: ''The Times of India'']
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[[File: Indian domination of big tech, as in 2020 Jan.jpg| Indian domination of big tech, as in 2020 Jan <br/> From: [https://epaper.timesgroup.com/olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIM%2F2020%2F02%2F01&entity=Ar00511&sk=751C2682&mode=text  Krishna to lead IBM, joins club of global Indian CEOs, February 1, 2020: ''The Times of India'']|frame|500px]]
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However, 95% of rural survey respondents had bank accounts, 47% life insurance, 29% post office deposits and 11% saved in precious metals. On a positive note, the survey found the investor base in India increasing, as nearly 75% of the respondents said they had participated in securities markets for the first time in the last five years. The survey had a sample size of 50,453 households and using a bootstrapping methodology , it was estimated there were a total of 3.37 crore investor households in India. Of these, 70% reside in urban areas.
  
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IBM just added to the roster of Indian-origin executives leading some of the foremost technology companies in the world.
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==2017: 8 lakh crore equities and mutual funds==
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[http://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2017%2F12%2F13&entity=Ar02717&sk=700FD646&mode=text  Indians invested more in stocks than in FDs in FY17, December 13, 2017: ''The Times of India'']
  
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IIT-Kanpur alumnus Arvind Krishna, 57, will lead the 108-year-old US giant—which posted annual revenue of $80 billion in 2018—from April 6, when CEO Virginia Rometty steps down from that position. The company’s share price, which has been trending down since 2013 except for occasional spikes, rose by 5% in opening trade in the US following the announcement.
 
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Indian-origin CEOs now lead tech companies that together command a market capitalisation of nearly $2.7 trillion. These include Satya Nadella of Microsoft, Sundar Pichai of Alphabet/Google, Shantanu Narayen of Adobe, Sanjay Mehrotra of Micron Technology, Nikesh Arora of Palo Alto Networks, and George Kurian of NetApp.
 
  
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Krishna, son of Army officer Vinod Krishna, joined IBM in 1990, right after university, and is currently its senior vice-president for cloud and cognitive software, two of its biggest focus areas. He led the $34-billion acquisition of open source enterprise software firm Red Hat in 2018, the biggest deal in IBM’s history, on which a lot of its future rides.
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[[File: Total wealth, in FDs & bonds, stocks, insurance, savings deposits, PF, MFs and others, FY16, FY17.jpg|Total wealth, in FDs & bonds, stocks, insurance, savings deposits, PF, MFs and others, FY16, FY17 <br/> From: [http://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2017%2F12%2F13&entity=Ar02717&sk=700FD646&mode=text  Indians invested more in stocks than in FDs in FY17, December 13, 2017: ''The Times of India'']|frame|500px]]
  
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[[Category:Economy-Industry-Resources|E CHIEF EXECUTIVE OFFICERS: INDIACHIEF EXECUTIVE OFFICERS: INDIA
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Indian investors are finally moving from bank fixed deposits (FDs), real estate and gold, the traditional investment products, to equities and mutual funds. In fiscal 2017, Indians invested Rs 8 lakh crore in stocks compared to Rs 3.4 lakh crore in FDs.
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CHIEF EXECUTIVE OFFICERS: INDIA]]
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[[Category:India|E CHIEF EXECUTIVE OFFICERS: INDIACHIEF EXECUTIVE OFFICERS: INDIA
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CHIEF EXECUTIVE OFFICERS: INDIA]]
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=Average tenure=
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At the end of FY17, total investments by Indians in equities at Rs 37.6 lakh crore was just Rs 2.5 lakh crore short of total FDs, pegged at Rs 40.1 lakh crore. This is the closest that the total equity wealth of Indian investors have ever come to bank FDs, a report by Karvy Private Wealth showed. At the end of FY16, the difference was over Rs 7 lakh crore with Rs 36.8 lakh crore in FDs compared to Rs 29.6 lakh crore in stocks, the report showed.
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==CEOs in India vis-à-vis other countries/ 2018==
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[https://timesofindia.indiatimes.com/business/are-corporate-leaders-ready-for-next-economic-catastrophe/articleshow/66315086.cms  October 22, 2018: ''The Times of India'']
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[[File: The Average tenure of CEOs in India, Pakistan and other countries, as in 2018.jpg|The Average tenure of CEOs in India, Pakistan and other countries, as in 2018 <br/> From: [https://timesofindia.indiatimes.com/business/are-corporate-leaders-ready-for-next-economic-catastrophe/articleshow/66315086.cms  October 22, 2018: ''The Times of India'']|frame|500px]]
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The firm believes total investments by Indians in equities will surpass wealth in bank FDs by the end of the current fiscal. “After losing a bit of traction, financial assets have regained their pole position in FY17. Wealth creation through equities has not been restricted to big institutional investors as individual participation, too, saw a huge jump via the direct as well as mutual funds route,” said Abhijit Bhave, CEO, Karvy Private Wealth.
  
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If you thought CEOs were the most prepared at handling the next economic catastrophe, think again: Most of them were not at the helm during the global financial crisis of 2008. In India the average tenure of CEO across equity markets is 7 years. Only Greece, Hong Kong and Thailand can barely boast a ten year track record.
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==2018-19:  Realty, gold top picks for HNIs==
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[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2019%2F08%2F30&entity=Ar02119&sk=8E3FB2DA&mode=text  Rupali Mukherjee, August 30, 2019: ''The Times of India'']
  
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=CEO salaries=
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[[File: HNIs, their investments and leisure activities- presumably as in 2018-19.jpg| HNIs, their investments and leisure activities: presumably as in 2018-19 <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2019%2F08%2F30&entity=Ar02119&sk=8E3FB2DA&mode=text  Rupali Mukherjee, August 30, 2019: ''The Times of India'']|frame|500px]]
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==2012-2015: CEO salaries, a rise==
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[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=Aurobindo-gets-best-value-from-payout-to-CEO-06062016017013 ''The Times of India''], Jun 06 2016
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Namrata Singh & Shubham Mukherjee
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Real estate is the most preferred investment asset class for high net-worth individuals (HNIs) in next 3 years, followed by stock markets, according to the Hurun Indian Luxury Consumer Survey. This is despite the slowdown in real estate witnessed over the last three years, and turbulence in stock markets over the past 18 months. This is the first year of an India survey by Hurun Research Institute, which aims to track changes and preferences of lifestyle, consumption habits and brand cognition of HNIs.
  
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'''Aurobindo gets best value from payout to CEO in 3 yrs'''
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Around 31% respondents believe that their investment allocation towards real estate sector will grow in the next two years. In line with IMF’s prediction of economic growth, equity markets followed by fixed income is the second and third choice, respectively. Interestingly, 21% respondents want to reduce allocation to real estate in the short term, and around 20% want to reduce exposure to gold. While 9.5% said investments into real estate will be at a status quo, the remainder believed that it would decline.
  
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The UK is the most popular investment destination for HNIs. Singapore takes second place, and Canada along with the US, which is forecast to grow 2-4% (at constant exchange rates this year), rank third. Nearly a fourth (24%) are “very confident” about the Indian economy over the next three years, 40% “confident”, while around 36% are pessimistic. As many as 36% of HNIs said their investment philosophy for this year would be “avoiding risk”, while only 14% will make “active investments”.
  
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CEO salaries have seen a spike as the occupant of the corner office operates in a challenging VUCA world--volatility , uncertainty , complexity and ambiguity. With CEOs taking home large payouts, there has been a greater scrutiny over hisher performance. The scrutiny has moved from a simplistic calculation of the return on CEO pay over profits to a holistic view covering other key financial parameters. So, which Indian company got the best value for its payout to a CEO?
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Among collectibles, HNIs prefer to spend the most on art and jewellery. Nearly half the respondents have two to three cars, 37% have only one car and 6% have more than five cars. Up to 46% of them renew their car every three to four years.
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Aurobindo Pharma extracted the best value from the payout to its CEO, followed by Britannia Industries and Bharat Forge over a three-year period--2012-13 to 2014-15.
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In a study commissioned by TOI to global staffing company Randstad, Aurobindo Pharma got an overall score of 386600 based on six parameters. The company paid its CEO, M Govindarajan, an average annual compensation of Rs 9.5 crore, which is above the average CEO salary during the period.
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The results for the study , `CEO Compensation & Company Performance', were based on six parameters -returns on compensation (profitCEO pay), change in revenue, operating margin, profit after tax, market capitalization and debt. For the study , the financial performance of BSE100 companies was analysed for the three-year period based on their annual reports. Idea Cellular , Bharat Petroleum, Axis Bank, HCL Technologies, State Bank of India, ICICI Bank and Lupin were the next on the top10 list which were able to maximize gains from CEO payouts. Randstad India MD & CEO Moorthy K Uppaluri said the current CEO compensation structure is set to undergo a paradigm shift with higher emphasis on performance-based pay and stock awards. “CEOs are increasingly accepting such results-driven compensation structures which are outcome based and linked to the company's success. The average CEO salary was Rs 7.6 crore in FY 2015, a17% increase over the previous year's average,“ said Uppaluri.
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Britannia Industries, which came second with an overall score of 303, paid an average salary of around Rs 4.3 crore to CEO Varun Berry . Bharat Forge, third on the list with a score of 297, shelled out around Rs 13.2 crore as salary to its CMD B N Kalyani, while Aditya Birla Group company Idea Cellular , which ranked fourth, gave MD Himanshu Kapania around Rs 6.6 crore.
 
  
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When contacted, Aurobindo Pharma declined to comment. Santrupt Misra, CEO, carbon black business & director , group HR, Aditya Birla Management Corporation, saidthe group does not judge leaders only in terms of financial performance but rather with a more comprehensive set of metrics that include qualitative aspects as well such as leadership and talent development, a strong customer and supplier connect and creating value for stakeholders.
 
  
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For FY13-FY15, CEO compensation grew by 25%, while revenues increased by 14.6%, ebitda (earnings before interest, tax, depreciation & amortization) margins were flat at 0.3% growth and PAT was up by 12%. Marketcap for the companies grew by 42% while long-term debt on their books increased by16%.
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Promoter-owned and run companies had on an average the highest CEO compensation, the study revealed. The average salary paid out to CEOs, for the period, was Rs 6.5 crore. PSUs offered the best return on CEO compensation given the low base of salaries.Nine out of the top 10 companies that offered the best PAT compensation multiple were PSUs. SBI, Coal India and ONGC were the top 3 companies on that parameter.
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==2019==
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[ Oct 27, 2019: ''The Times of India'']
  
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Harsh Goenka, chairman RPG Enterprises, says “how much is too much“ is currently engaging boards of many Indian companies. “Salaries of CEOs have increased exponentially but so has the complexity . A CEO today is not only a leader , but also astrategist, a tactician, a coach, a troubleshooter , a mediator , an innovator and much more. It is impossible to relate CEO salary with just PAT or one particular matrix, but a combination of them,“ he said.
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[[File: Wealth held by individual Indians in physical form, 2019.jpg|Wealth held by individual Indians in physical form, 2019 <br/> From: |frame|500px]]
  
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However , one top CEO, who did not wish to be identified, said CEO pay is out of whack and more due diligence is required while fixing compensation.
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See graphic, ‘Wealth held by individual Indians in physical form, 2019 '
  
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==As in 2021 Jan==
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[[File: Investment in stock markets, banks, mutual funds, gold, in the period ending 2021 Jan.jpg| <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2021%2F02%2F02&entity=Ar00406&sk=BFD40CBF&mode=image  February 2, 2021: ''The Times of India'']|frame|500px]]
  
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==2014-15: CEO-median employee salary ratio==
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'''See graphic''':
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[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=Mukeshs-pay-205-times-RILs-median-06072015017005 ''The Times of India''], Jul 06 2015
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[[File: Employers' salary as a multiple of median pay.jpg|Employers' salary as a multiple of median pay; Graphic courtesy: [http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=Mukeshs-pay-205-times-RILs-median-06072015017005 ''The Times of India''], Jul 06 2015|frame|500px]]
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''' Mukesh's pay 205-times RIL's median '''
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Ratio Stands At 439 For ITC's Deveshwar, 89 For Wipro's Premji
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'' Investment in stock markets, banks, mutual funds, gold, in the period ending 2021 Jan ''
  
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Billionaire industrialist and India's richest man Mukesh Ambani has not taken a pay hike for seven years, but his salary is over 205-times that of the median employee remuneration at Reliance Industries (RIL).
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However, this ratio stands much higher at 439 times in case of ITC executive chairman Y C Deveshwar.
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INVESTMENTS AND SAVINGS (PERSONAL): INDIA]]
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The same ratio stands much lower at 89-times in case of IT major Wipro's chairman and managing director Azim Premji, and just at 19-times for mortgage giant HDFC's chair a man Deepak Parekh for the latest fiscal 2014-15.
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=Returns=
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==2006-15==
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[[File: Returns from stocks, gold and fixed income in India, 2006-15.jpg| Returns from stocks, gold and fixed income in India, 2006-15; Graphic courtesy: [http://epaperbeta.timesofindia.com/Gallery.aspx?id=18_01_2016_020_012_014&type=P&artUrl=Time-to-rebalance-portfolio-18012016020012&eid=31808 ''The Times of India'']|frame|500px]]
  
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However, HDFC Bank's t MD Aditya Puri got a remuner p ation that was 117-times the t median employee pay at the bank, while for ICICI Bank 2 CEO Chanda Kochhar, it was 97 c times and at over 74 times for Axis Bank's managing director and CEO Shikha Sharma.
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'''See graphic''':
  
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For IT giant Infosys' CEO Vishal Sikka, his pay was 116 times of the median employee pay at the company . The same ratio for HUL's CEO Sanjiv Mehta was 93 times, but much higher at 293 times for Vedanta Limited's chairman Navin Agarwal.
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''Returns from stocks, gold and fixed income in India, 2006-15''
  
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Listed companies have be gun disclosing these ratios, as also other comparisons such as salary hikes for the top management personnel and an average staff, for the first time pursuant to the new Companies Act and Sebi's latest Corporate Governance Code coming into force.
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==2007-2017==
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===Safe investments vs. riskier ones===
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'''See graphic''':
  
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While a majority of the companies are still in the proc ess of disclosing these details, the disclosures made so far by the top companies show a wide variance in these ratios, while there is also a huge difference between the pay hike figures for the top management per sonnel and an average staff member in many cases.
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''Returns on equity funds, gilt funds, gold ETFs and liquid funds, 2007-2017''
  
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However, there are a few cases where the increase in the median employee remunera tion is almost equal or even higher than the same for the CEOs and other key manage ment personnel.
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[[File: Returns on equity funds, gilt funds, gold ETFs and liquid funds, 2007-2017.jpg|Returns on equity funds, gilt funds, gold ETFs and liquid funds, 2007-2017 <br/> From: [http://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2017%2F12%2F18&entity=Ar02401&sk=1E5C5907&mode=text  NARENDRA NATHAN, December 18, 2017: ''The Times of India'']|frame|500px]]
  
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In case of RIL, chairman and MD Mukesh Ambani has kept his salary capped at Rs 15 crore for seven years now, while the median remuneration of em ployees increased by 3.7% to Rs 7.29 lakh during 2014-15. The to tal remuneration of key mana gerial personnel, in fact, dipped by 1.9% to Rs 73.28 crore.
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=Saving habits=
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==2011-16: Indians invest more in equity, debt==
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[[File: 2011-16 Investment by individual Indians in shares, bank deposits, insurance.jpg|2011-16: Investment by individual Indians in shares, bank deposits, insurance. |frame|500px]]
  
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==2014==
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[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=Indians-invest-more-in-equity-debt-29092016025036  Allirajan M, Indians invest more in equity, debt, Sep 29 2016 : The Times of India]
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[http://epaperbeta.timesofindia.com//Article.aspx?eid=31808&articlexml=PROFESSIONALS-GAIN-GROUND-IN-M-PAY-CLUB-26122014023046 ''The Times of India'']
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Dec 26 2014
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Indian households are increasingly putting more money in equities and debentures. Investments by households in shares and debentures jumped 72.2% year-on-year (yo-y) or by `38,491crore to `91,763 crore in 2015-16, Reserve Bank of India (RBI) data showed.
  
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[[File: top.jpg|Top paid professionals and promoters in India|frame|500px]]
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In contrast, their investments in bank deposits advanced by a mere 3.8% y-o-y or by `22,594 crore to around `6.16 lakh crore.
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India Inc has 96 executives in the million-dollar pay club, a study of top salaries for 2013-14 commissioned by TOI has revealed. The number of professional CEOs in the club has increased from 34 during 2012-13 to 39, finds the study by global executive search firm EMA Partners. In case of promoter CEOs, the number went up marginally from 56 to 57. The study took into account executive compensation in excess of Rs 6 crore per annum for the top 200 listed companies and excluded stock options. Here are the highlights...
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==2016: CEO pay falls 15%, after years==
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Household investments in shares and debentures have surged more than five times between 2012-13 and 2015-16. But their savings in bank deposits have moved up by a measly 7.1% during the timeframe, RBI data showed. Incidentally, households held a record `6.48 lakh crore in bank deposits in 2013-14. Household investments in life insurance products, another favourite, increased 9.8% y-o-y to around `2.72 lakh crore.
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[http://timesofindia.indiatimes.com/business/international-business/Avg-CEO-pay-falls-15-after-years-of-rise/articleshow/52474555.cms ''The Times of India''], May 28, 2016
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A mere $19.3 million. That's how much compensation Wells Fargo's chief executive, John G Stumpf, was awarded last year, making him perfectly representative of the best-paid CEOs in the country.
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The interest in equities and debentures has been growing at a robust pace over the last three years. The steady decline in interest offered by banks for deposits following a series of rate cuts by the RBI has acted as a dampener for those looking to invest in traditional instruments such as FDs. Though there have been corrections, equity markets have risen steadily in last three years with benchmark indices hitting new highs.
  
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Among the 200 highest-paid chief executives at American companies with annual revenue of at least $1 billion that filed proxies by April 30, the average pay was, give or take a few thousand dollars, equivalent to Stumpf's own: a cool $19.3 million.
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==2011-18==
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[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F08%2F31&entity=Ar00400&sk=C6A8A304&mode=text#  August 31, 2018: ''The Times of India'']
  
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Yet by the topsy-turvy standards of corporate pay, what's remarkable is not how big that number is, but how small.
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[[File: 2011-18- The kinds of personal investments that Indians made.jpg|2011-18- The kinds of personal investments that Indians made <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F08%2F31&entity=Ar00400&sk=C6A8A304&mode=text#  August 31, 2018: ''The Times of India'']|frame|500px]]
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After years of steady increases, the average compensation among the top executives in 2015 was down 15% from the 2014 figure of $22.6 million, according to the Equilar 200 Highest-Paid CEO Rankings, conducted for The New York Times. By other measures, too, CEO compensation declined. Cash and stock awards, the main components of pay packages, fell last year. Among the companies in the rankings, the biggest pay package, worth $94.6 million, went to Dara Khosrowshahi of Expedia. That meant that for the first time since 2012 no company awarded its chief more than $100 million.
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All of which raises a tantalizing prospect: Has executive pay finally peaked? Have the CEOs and the compensation committees that set their pay discovered something approaching modesty?
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Indian families held a record share of their income in the form of cash in 2017-18. Preference for cash is usually a sign of risk aversion. But in the same year, share of savings in stocks grew over 4 times, reflecting higher risk acceptance. Since Indians are also investing more in pensions and keeping much less of their incomes in deposits than before it’s safe to assume that spike in cash is a temporary effect of the cash drought caused by demonetisation in 2016-17. Overall, Indians are saving more, and better, than before
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Some experts say that is the case. "We're hearing a great deal more concern from compensation committee chairs about absolute pay," said Kenneth Daly, CEO of the National Association of Corporate Directors, a trade group for board members. What is certain is that last year's weak stock market pulled down the value of executive pay packages. After posting fairly consistent gains for years, the S&P 500-stock index and the Dow Jones industrial average each fell slightly in 2015. Because the average compensation package was 69% stock, lower share prices meant less pay for CEOs.
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But the relation between pay and performance remains tenuous at best. Several CEOs reaped huge windfalls, even while presiding over precipitous declines in total shareholder return. Take Philippe Dauman, chief of the media conglomerate Viacom. Dauman was awarded $54.1 million last year, a 22% raise from 2014. Over the year, Viacom shares plunged 43%.
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==Average 2016 salary Rs 20 cr, double of 2014==
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==2013-15: Saving habits==
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[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=Avg-CEO-pay-at-blue-chips-up-100-08082016017036 ''The Times of India''], Aug 08 2016
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[[File: Some facts about investment patterns in India.jpg|Some facts about investment patterns in India; Graphic courtesy: [http://epaperbeta.timesofindia.com/Gallery.aspx?id=20_02_2016_031_046_002&type=P&artUrl=LIFE-INSURANCE-TOP-INVESTMENT-INFLATION-BIG-WORRY-20022016031046&eid=31808 ''The Times of India''], February 20, 2016|frame|500px]]
  
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'''Avg CEO pay at blue chips up 100% in 2 years'''
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'''See graphic''':
  
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In a sharp jump, the average CEO salary at top listed companies in the private sector is approaching Rs 20 crore -double the level seen just two years ago at about Rs 10 crore. However, this remains less than one-sixth of the average CEO salaries at top listed companies in the US, which stood at close to $20 million (about Rs 130 crore) in 2015 despite a decline from 2014. In India, the average CEO salary at top private companies, on the other hand, is way above the Rs 25-30 lakh average that their public sector counterparts get.
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''Some facts about investment patterns in India''
  
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An analysis of the CEO salaries for the financial year 2015-16 disclosed by the country's top listed companies, forming part of the stock market benchmark index sensex, shows that they paid an average overall remuneration of close to Rs 19 crore to their top executives.
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==2014-18, state-wise==
 +
[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F09%2F04&entity=Ar02019&sk=73AB90C7&mode=text  September 4, 2018: ''The Times of India'']
  
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This includes salary , commissions, allowances, value of all perquisites and Esops exercised during the year, among other benefits disclosed by the companies as part of the total remuneration to their top-paid executives which included executive chairpersons, CEOs or managing directors.
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[[File: The saving habits of Indians, 2014-18, state-wise.jpg|The saving habits of Indians, 2014-18, state-wise <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F09%2F04&entity=Ar02019&sk=73AB90C7&mode=text  September 4, 2018: ''The Times of India'']|frame|500px]]
  
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The analysis is based on the disclosures made by 20 out of the total 24 private sector companies on the sensex, as the remaining four are yet to disclose their figures. Among the six PSUs on the sen sex, the figure for 2015 16 is available only in case of SBI, whose chairperson Arund hati Bhattacharya got about Rs 31 lakh.
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'''See graphic''':
  
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Those at the lower end in terms of overall remuneration were mostly bankers and in cluded Axis Bank's Shikha Sharma (Rs 5.5 crore), ICICI Bank's Chanda Kochhar (Rs 6.6 crore) and HDFC Bank's Aditya Puri (Rs 9.7 crore). At HDFC, chairman Deepak Pa chairman Deepak Parekh was paid Rs 1.89 crore, while vice-chairman and CEO Keki Mistry got Rs 9.3 crore and MD Renu Sud Karnad got Rs 8.5 crore.The latest figures were not available for four companies -Sun Pharma, Maruti, Hero MotoCorp and Cipla.
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''The saving habits of Indians, 2014-18, state-wise''
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===2nd highest ratio to national per capita income===
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[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=A-new-measure-puts-Indian-CEOs-ahead-of-26112016026032  A new measure puts Indian CEOs ahead of Americans,  Nov 26 2016 : BLOOMBERG]
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[[File: The ratio between CEO compensation in India and other leading countries to the national per capita income.jpg| The ratio between CEO compensation in India and other leading countries to the national per capita income |frame|500px]]
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 +
Investors in Gujarat are biggest risk-takers with 42% of their mutual fund money going into equities. Investors in Bengal, with 38% of their money in equities, are not far behind and do better than Delhi (36%), Karnataka (36%) & Maharashtra (32%)
  
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If your life's goal is to be a highly paid chief execu tive officer, the US is the place. But if your dream is just to be richer than society , South Africa and India are great bets too.
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==2017: even the poor and young want real estate, gold==
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[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=Balance-Sheet-Of-Indian-Families-A-Matter-Of-07092017015012  Subodh Varma, Balance Sheet Of Indian Families A Matter Of Life And Debt, September 7, 2017: ''The Times of India'']
  
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In either case, probably best to avoid Thailand, Poland and China.
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[[File: Assets and liabilities as % of total wealth of households in India, China, Germany, the USA and the UK, 2017.jpg|Assets and liabilities as % of total wealth of households in India, China, Germany, the USA and the UK, 2017; [http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=Balance-Sheet-Of-Indian-Families-A-Matter-Of-07092017015012  Subodh Varma, Balance Sheet Of Indian Families A Matter Of Life And Debt, September 7, 2017: ''The Times of India'']|frame|500px]]
  
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A Bloomberg ranking of CEO compensation at companies filling benchmark indexes in 25 of the world's largest economies shows the biggest paychecks -by far -are written in the US. Heads of S&P 500 businesses get pay packages averaging $16.9 million, about 2.6 times more than what their counterparts reap abroad. In second-place Switzerland, CEOs get 1.6 times the average.
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Indian families borrow and invest in very different ways than families in the US, UK or Germany , and even those in China. The depth of these differences, across all ages and economic levels, is revealed in a recent report on household finances prepared by the RBI.
  
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In China, pay is 90% below the average -at least based on disclosures by companies in the Shanghai Shenzhen CSI 300 Index.They typically report annual compensation of about $640,000. But heads of stateowned companies, for example, enjoy valuable perks including housing and entertainment that sometimes go unmentioned in filings.
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It shows that a major proportion of household wealth in Indian families is kept as real estate or gold, even among younger families, and even by the poorest 40% of population.
  
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The deck gets shuffled a bit when CEO pay is compared to estimated income generated per person -a rough gauge of what chiefs get relative to the society where their companies are listed. That puts pay for CEOs in South Africa and India ahead of the US. There are myriad reasons behind the international disparities in packages.
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This is not the case in other countries. Institutional borrowings by Indian families are low in early life and go on increasing leaving many retired persons with a debt overhang, unlike advanced countries where mortgages reduce after retirement.And, pensions are virtually absent in India while in most Western countries they are a major asset in old age.
  
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One of most important is size. The US is home to many of the world's largest publicly traded corporations.
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More than three quarters of family wealth is invested in real estate (land and dwelling units) by an average Indian family compared to just 44% in the US, and 37% in UK and Germany . In China, about 62% of wealth goes into real estate. Even among the poorest 20% of the population, 59% have some land or dwelling unit in India, while in China, the similar proportion is 61%.
  
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Cost of living explains some of it, too. It's much more expensive to live lavishly in North America and Western Europe than in places like Thailand, where CEOs take home roughly $60,000 -less than in every other nation ranked. In other cases, it's cultural. In Japan, big paychecks are typically taboobecause they're considered a sign of greed. And taxes and regulations matter.
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But in the rich countries a minuscule share of the poorest quintile has real estate -4% in US, and less than 1% in UK and Germany .
  
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In the US, businesses will at least be required to disclose more, comparing a CEO's pay with the median worker's starting in 2017.President-elect Donald Trump has vowed to issue a temporary moratorium on new regulations that aren't “compelled by Congress or public safety.“ Such comparisons aren't simple. Bloomberg's ranking of CEO pay against earnings across society bases income generated per person on gross domestic product per capita, adjusted for purchase-price parity . It's not a perfect measure: GDP measures just the value of goods and services produced, not how they were distributed.
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This may sound bizarre considering India's poverty but here is the thing: average value of the main residence in the poorest Indian households is Rs 22,000, while it is Rs 15 lakh in Germany and Rs 3.7 lakh in the US.
  
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The figures show that CEOs in South Africa and India take home more than the estimated income generated by an average worker -outearning their American colleagues on a relative basis.
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The RBI report is talking of proportion of different types of family wealth. Their absolute values are obviously very different.
  
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Each country's compensation figure is based on the average CEO pay package for companies in one major stock index, weighted by market capitalization. The pay, disclosed in public filings, includes any salary , bonuses, value of perquisites and non-cash pay such as equity awards, deferred-compensation programs and pensions.
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Besides real estate, the other main target of investment in India is gold. About 11% of family wealth goes into buying gold. Families in other countries spend virtually nothing on this, with the Chinese spending a mere 0.4% of their wealth on gold. Indian families also have gold loans amounting to about 8% of their total liabilities, again a feature not found anywhere else.
  
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==2016: 3PIOs among top 100;2 in top 10==
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“Most households use debt to cope with emergency expenses, such as hospitalisation, or property damage due to a natural disaster. The interest rates on unsecured debt are very high. Therefore, households prefer to put their savings in real estate and gold, which can also be used as collateral,“ RBI's Household Finance Committee chairman Tarun Ramadorai of Imperial College, London, told TOI. Detailed data on countries drawn from various surveys is available in a paper by Ramadorai and coauthors published in 2017.
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'''Sources:''' The Times of India
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1. [http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=2-Indians-among-10-highest-paid-CEOs-29042016024022 ''The Times of India''], Apr 29 2016
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Although 73% of families in India have financial assets like cash, bank accounts and pension accounts, they hold very small amounts adding up to just 5% of their total wealth, he added.
  
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2. [http://timesofindia.indiatimes.com/business/international-business/Avg-CEO-pay-falls-15-after-years-of-rise/articleshow/52474555.cms ''The Times of India''], May 28, 2016
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Medical emergencies, especially among the elderly , are one of the main reasons why families in India seek loans at usurious rates from money lenders. Such unsecured loans make up nearly 56% of all liabilities for Indian families, much higher than China at 26%, US (13%) and Germany (24%). The RBI report notes that “some of these risks could be mitigated through strengthening the public provision of health and social welfare services.“
  
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''' 2 Indians among 10 highest paid CEOs '''
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Indian families are also exceptional in that housing loans are low in early life and rise beyond retirement ages.In other countries such loans rise in middle age but fall off at retirement. This happens because Indian families borrow later in life and it is customary to bequeath property to future generations who in turn look after the elderly.
  
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As many as three Indian origin persons have been named among the 100 highest-paid CEOs globally with PepsiCo's Indra Nooyi and LyondellBasell's Bhavesh V Patel making it to the top ten list compiled by Equilar.
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These traditional structures are increasingly under pressure from shifting demographic patterns, social norms, and changing economic conditions, introducing risks to economic well-being especially as households age, the report says.
  
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Chemicals company LyondellBasell Industries' top executive Patel was ranked sixth on the list with a total compensation of $24.5 million, while Nooyi, the chief executive of PepsiCo, was ranked eighth on the list with a total pay of $22.2 million. Satya Nadella, the CEO of Microsoft, was ranked 26th on the list of 100 highestpaid CEOs with a total compensation of $18.3 million.
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=Small savings=
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==Small savings rates/ April 2015- August 2016==
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[[File: Small savings rates, April 2015- August 2016.jpg| Small savings rates, April 2015- August 2016; Graphic courtesy: [http://epaperbeta.timesofindia.com/Gallery.aspx?id=12_09_2016_020_020_009&type=P&artUrl=Get-ready-for-cut-in-EPF-rate-12092016020020&eid=31808 ''The Times of India''], September 12, 2016|frame|500px]]
  
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A mere $19.3 million. That's how much compensation Wells Fargo's chief executive, John G Stumpf, was awarded last year, making him perfectly representative of the best-paid CEOs in the country.
+
See graphic, 'Small savings rates, April 2015- August 2016'
  
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Among the 200 highest-paid chief executives at American companies with annual revenue of at least $1 billion that filed proxies by April 30, the average pay was, give or take a few thousand dollars, equivalent to Stumpf's own: a cool $19.3 million.
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==2017-18==
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[[File: Small savings in India, state-wise, 2017-18.jpg|Small savings in India, state-wise, 2017-18 <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2021%2F04%2F02&entity=Ar00718&sk=28EA6C30&mode=text  April 2, 2021: ''The Times of India'']|frame|500px]]
  
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Yet by the topsy-turvy standards of corporate pay, what's remarkable is not how big that number is, but how small.
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'''See graphic''':
  
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After years of steady increases, the average compensation among the top executives in 2015 was down 15% from the 2014 figure of $22.6 million, according to the Equilar 200 Highest-Paid CEO Rankings, conducted for The New York Times. By other measures, too, CEO compensation declined. Cash and stock awards, the main components of pay packages, fell last year. Among the companies in the rankings, the biggest pay package, worth $94.6 million, went to Dara Khosrowshahi of Expedia. That meant that for the first time since 2012 no company awarded its chief more than $100 million.
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'' Small savings in India, state-wise, 2017-18 ''
  
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All of which raises a tantalizing prospect: Has executive pay finally peaked? Have the CEOs and the compensation committees that set their pay discovered something approaching modesty?
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==Post offices vs banks/ 2018==
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[[File: Savings in Post offices vs banks, state-wise, 2018.jpg| Savings in Post offices vs banks, state-wise / 2018 <br/> From: [https://epaper.timesgroup.com/olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL/2021/04/20&entity=Ar01503&sk=988F0325&mode=image  April 20, 2021: ''The Times of India'']|frame|500px]]
  
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Some experts say that is the case. "We're hearing a great deal more concern from compensation committee chairs about absolute pay," said Kenneth Daly, CEO of the National Association of Corporate Directors, a trade group for board members. What is certain is that last year's weak stock market pulled down the value of executive pay packages. After posting fairly consistent gains for years, the S&P 500-stock index and the Dow Jones industrial average each fell slightly in 2015. Because the average compensation package was 69% stock, lower share prices meant less pay for CEOs.
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'''See graphic''':
  
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But the relation between pay and performance remains tenuous at best. Several CEOs reaped huge windfalls, even while presiding over precipitous declines in total shareholder return. Take Philippe Dauman, chief of the media conglomerate Viacom. Dauman was awarded $54.1 million last year, a 22% raise from 2014. Over the year, Viacom shares plunged 43%.
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'' Savings in Post offices vs banks, state-wise/ 2018 ''
  
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==2016> 2017: fewer CEOs get pay increases==
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[[Category:Economy-Industry-Resources|S INVESTMENTS AND SAVINGS (PERSONAL): INDIAINVESTMENTS AND SAVINGS (PERSONAL): INDIAINVESTMENTS AND SAVINGS (PERSONAL): INDIA
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[http://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/PrintArticle.aspx?doc=TOIDEL%2F2017%2F12%2F26&entity=ar02101&ts=20171226004516&uq=20171213034334&mode=text  Namrata Singh, 51 Execs Get Over 10% Pay Hike In FY17 Against 72 In FY16, December 26, 2017: ''The Times of India'']
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INVESTMENTS AND SAVINGS (PERSONAL): INDIA]]
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[[Category:India|S INVESTMENTS AND SAVINGS (PERSONAL): INDIAINVESTMENTS AND SAVINGS (PERSONAL): INDIAINVESTMENTS AND SAVINGS (PERSONAL): INDIA
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[[Category:Pages with broken file links|INVESTMENTS AND SAVINGS (PERSONAL): INDIAINVESTMENTS AND SAVINGS (PERSONAL): INDIAINVESTMENTS AND SAVINGS (PERSONAL): INDIA
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[[File: 2015-2017, slow growth in the number of upper- rung CEOs, and in their compensations.jpg|2015> 2017- slow growth in the number of upper- rung CEOs, and in their compensations <br/> From: [http://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/PrintArticle.aspx?doc=TOIDEL%2F2017%2F12%2F26&entity=ar02101&ts=20171226004516&uq=20171213034334&mode=text  Namrata Singh, 51 Execs Get Over 10% Pay Hike In FY17 Against 72 In FY16, December 26, 2017: ''The Times of India'']|frame|500px]]
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= Gold Bonds=
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==2019: benefits of different types of bonds==
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[https://epaper.timesgroup.com/olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2019%2F07%2F02&entity=Ar00201&sk=EE58EF27&mode=text  July 2, 2019: ''The Times of India'']
  
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''Slowdown restricts CEOs’ entry into million-$ club''
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[[File: 2019- the benefits of different types of gold bonds and physical gold..jpg| 2019: the benefits of different types of gold bonds and physical gold <br/> From: [https://epaper.timesgroup.com/olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2019%2F07%2F02&entity=Ar00201&sk=EE58EF27&mode=text  July 2, 2019: ''The Times of India'']|frame|500px]]
  
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You can now hold gold in either its physical form or on paper — through gold bonds or through mutual funds that trade in gold. What should you do? The answer depends on what you are looking for. If you want liquidity, and are planning to take a loan against your stock of gold, then physical gold is your best bet. But, remember, you will need to pay a capital gains tax when you sell physical gold. But if you are looking at gold as a long-term investment, then a gold bond is what you might want to go for. Not only are you spared capital gains tax when you redeem these, you also earn a small interest. A look at the different options that are now available
  
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A subdued economy has not only hit the man on the street but also top execs in the corner office by slowing their entry into the million-dollar salary club.
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[[Category:Economy-Industry-Resources|S INVESTMENTS AND SAVINGS (PERSONAL): INDIA
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INVESTMENTS AND SAVINGS (PERSONAL): INDIA]]
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[[Category:India|S INVESTMENTS AND SAVINGS (PERSONAL): INDIA
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INVESTMENTS AND SAVINGS (PERSONAL): INDIA]]
  
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According to a study by EMA Partners, commissioned byTOI, only one executive was added to their list of CEOs who took home a million dollars (about Rs 6.5 crore) in compensation in 2016-17. Global executive search firm EMA Partners tracks the earnings of CEOs/ CXOs across top 200 listed companies in India for TOI. Over the last few years, there has been a steady rise in the membership of the elite club — from 94 in 2013-14 to 100 in FY15 to 119 in FY16. After growing at 6% and 19% respectively in the previous two fiscals, the pace has slowed in 2016-17 with the club expanding by just one more member to 120. The study does not include stock options and, thus, several CEOs who took home a fatter package on account of such perquisites do not figure in the list.
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=Systematic investment plans =
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== 2016>18: a 53% increase in inflows==
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[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F04%2F18&entity=Ar02318&sk=F356968B&mode=text  Allirajan M, MF SIP kitty crosses $10bn mark in FY18, April 18, 2018: ''The Times of India'']
  
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The total compensation of the elite club has come down from Rs 2,083 crore in 2016 to Rs 1,979 crore in 2017. It stood at Rs 1,528 crore in 2015. The average compensation (total sum of compensation divided by the number of executives in the million-dollar club), too, has fallen from Rs 17.5 crore in 2016 to Rs 16.5 crore in 2017. In 2015, the average compensation was around Rs 15 crore. According to the study, the average compensation is lower in 2017 as only 51executives got over 10% increase in salary against 72 in 2015-2016.
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[[File: SIP contribution, January-March, 2017-18.jpg|SIP contribution, January-March, 2017-18 <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F04%2F18&entity=Ar02318&sk=F356968B&mode=text  Allirajan M, MF SIP kitty crosses $10bn mark in FY18, April 18, 2018: ''The Times of India'']|frame|500px]]
  
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What are the reasons behind the muted membership rise in the elite club when the global growth outlook has improved and the India story remains intact? “The rise in compensation depends on several factors, including business growth, availability and competition for talent, internal leadership pipeline and, above all, the business impact. The core/manufacturing sector has gone through a bit of stress during the past year and this reflects in the overall muted compensation trend in that period,” said K Sudarshan, regional managing partner —Asia, EMA Partners. The overall CEO compensation is also a function of the profitability of the enterprise and the commissions/incentives paid out in lieu, he added. Sudarshan, however, sees this as a temporary phenomenon as growth and profitability numbers are kicking in this fiscal and he expects compensation to also keep pace with it.
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''Sees 53% Jump From FY17, Mobilises Record $1Bn In Mar''
  
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Moreover, it’s a myth to believe that CEO compensation necessarily goes up every year, says Santrupt Misra, CEO, Carbon Black Business and director, group HR, Aditya Birla Group. “Some years may see a strong rise, while others may witness muted growth. The growth of the economy too can be a factor in the rate of compensation growth. Let’s also not forget that boards and shareholders nowadays keep a close watch on the CEO compensation, making it more aligned to the performance of the company.”
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There is no stopping the mutual fund SIP juggernaut. Investors have committed about $10.3 billion (Rs 67,190 crore) through SIPs (systematic investment plans), the bedrock of inflows into equity MFs, in 2017-18, a massive 53% increase over the previous financial year. This is the highest ever mobilisation in a financial year.
  
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The study also establishes the trend of professional CEOs outnumbering promoter CEOs. Among the 120 CEOs in the million-dollar salary club, 61 are professional CEOs and 59 are promoters. Sudarshan said, “As we have seen, professional CEOs will continue to become more prominent and the tribe is set to expand as Indian businesses grow in scale and complexity.”
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Inflows into SIPs stood at around $1.1 billion (Rs 7,119 crore) in March alone, the highest ever for a month. MF SIP accounts stood at 2.11 crore at the end of March, data with the Association of Mutual Funds in India (AMFI) showed. Incidentally, the total number of SIP accounts crossed the 1 crore mark only in August 2016.
  
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Leading the list of milliondollar salary CEOs, once again, are the Marans of Sun Group — Kalanithi Maran and Kavery Kalanithi — who drew a compensation of about Rs 78 crore each in 2016-17 (see graph). Former Infosys CEO Vishal Sikka, who catapulted into the top 10 of the club last year with a compensation of Rs 49 crore, is down to rank 54 this year with a Rs 12-crore package. Among the professional CEOs who marked their entry into the club this time are Guenter Butschek, CEO & MD, Tata Motors (around Rs 16 crore), Suresh Narayanan, CMD, Nestle India (Rs 9 crore) and Chanda Kochhar, MD & CEO, ICICI Bank (about Rs 8 crore). Among those who exited the club are Gautam Singhania, CMD, Raymond (approximately Rs 6 crore) and Ajit Gulabchand, CMD, HCC (around Rs 4 crore). T K Kurien, who retired as executive vice-chairman of Wipro on January 31, 2017, had a total compensation of Rs 9.7 crore from April 1, 2016 till the time he superannuated. However, he did not make it to the list this year because his compensation includes a stock option component of around Rs 5 crore.
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SIP is an investment option offered by fund houses where one could invest a fixed amount in an MF scheme periodically at fixed intervals—say once a month instead of making a lump-sum investment. The SIP instalment amount could be as small as Rs 500 per month. SIP is similar to a recurring deposit where you deposit a small /fixed amount every month.
  
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AM Naik, who retired as executive chairman of Larsen & Toubro in September 2017, on the other hand, took home a retirement benefit component of Rs 38 crore (which includes encashment of accumulated past service leave of Rs 32 crore) which boosted his total income to about Rs 60 crore (excluding stock option perquisites), aiding his inclusion in the million-dollar club this year. Naik’s basic salary was just around Rs 3 crore in fiscal year 2017.
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The MF industry added 9.70 lakh SIP accounts on average each month during 2017-18 against an average of 6.27 lakh SIP accounts added each month during 2016-17. AMFI data showed. The average SIP size was about Rs 3375 per SIP account.
  
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Most founders earn more from equity appreciation than salary and requisite commissions. According to the study, Mukesh Ambani’s compensation this year remained the same as that in 2015-16 at Rs 15 crore, while Anand Mahindra’s package rose to around Rs 8 crore from Rs 7 crore. Kumar Mangalam Birla figured in the top 20 with a compensation of Rs 38 crore, which is down from Rs 43 crore last year.
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SIPs are done almost entirely in equity schemes. The fixed income segment contributes only about 5% in volume terms and about 2% in value terms to overall SIPs. SIP is a convenient method of investing through standing instructions to debit the investor’s bank account every month, without the hassle of having to write out cheques.
  
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Average CEO salary in India is said to be lower than comparable companies in the West in absolute terms. “Many Indians are succeeding as CEOs of global companies, giving credence to country’s talent and ability. The question to ask would be whether Indian CEOs leading global businesses will be compensated on a par with colleagues in the West and at what stage of economic growth are we likely to see it happening,” Misra said. He believes compensation issues, particularly the executive & CEO package, are often oversimplified in popular discourse.
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“SIPs account for 50% of new MF accounts. They have become a brand of their own,” says Raghav Iyengar, executive vice president, ICICI Prudential MF. “SIPs have been getting traction as investors are not trying to time the market,” says Srikanth Meenakshi, co-founder and COO, Fundsindia.com, an investment platform for MFs.
  
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==2017: CEOs in India get 229x average worker’s pay==
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“The fast pace of growth (in SIPs) is due to the network effect. People are buying MFs through SIPs as most others are doing so,” he explains. “This is the one of the easiest ways to start a new investment,” Raghav says.
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[http://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2017%2F12%2F29&entity=Ar02105&sk=F137EFE4&mode=text  CEOs in India get 229x avg worker’s pay, December 29, 2017: ''The Times of India'']
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[[File: The ratio compares CEO pay with the per-capita GDP adjusted for purchasing power parity (PPP), as in December 2017.jpg|The ratio compares CEO pay with the per-capita GDP adjusted for purchasing power parity (PPP), as in December 2017 <br/> From: [http://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2017%2F12%2F29&entity=Ar02105&sk=F137EFE4&mode=text  CEOs in India get 229x avg worker’s pay, December 29, 2017: ''The Times of India'']|frame|500px]]
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=Upgrades, downgrades=
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==2016> 2018==
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[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F04%2F03&entity=Ar01810&sk=3AA24171&mode=text  Nearly ₹3L-cr bonds downgraded in FY18, April 3, 2018: ''The Times of India'']
  
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Chief executive officers in the US are paid much better than their peers abroad, and the gap between their compensation and that of average American workers is wider than in other countries. CEOs of the biggest publicly-traded US companies averaged $14.3 million in annual pay, more than double that of their Canadian counterparts and 10 times greater than those in India, according to a Bloomberg analysis that used benchmark stock indexes in 22 nations.
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[[File: Bonds upgraded or downgraded in 2016, 2017 and 2018.jpg|Bonds upgraded or downgraded in 2016, 2017 and 2018 <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F04%2F03&entity=Ar01810&sk=3AA24171&mode=text  Nearly ₹3L-cr bonds downgraded in FY18, April 3, 2018: ''The Times of India'']|frame|500px]]
  
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CEOs of companies listed in India’s sensex index still earn 229 times more than the average worker there, the second-biggest gap worldwide after the US ratio of 265, according to a separate Bloomberg ranking. Norway and Austria have among the smallest margins. CEOs of companies in the Norwegian OBX index got on average $1.28 million, roughly equal to the income generated by 20 people.
 
  
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A company listed on a US exchange must disclose the ratio between a CEO’s compensation and the pay of its median worker for any fiscal year starting on or after January 1, 2017. Peter Simon, a German lawmaker in the European parliament, proposed a similar ratio for banks, aiming to bring executive pay to a “more appropriate level”.
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''Default Rate May Go Up In Current Financial Year On Higher Interest Cost, Says ICRA''
  
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There are myriad reasons for compensation discrepancies between executives. The US is home to several of the world’s largest corporations, which tend to pay more. Cost of living is often higher in North America and Western Europe than some parts of Asia. And even the mere disclosure of detailed figures can push pay higher as boards set CEOs’ compensation in line with their peers, said Tim Quigley, associate professor of management at the University of Georgia.
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The quality of Indian debt soured considerably in FY18 with Rs 3 lakh crore worth of bonds being downgraded compared to Rs 1.7 lakh crore in FY17. Over half the downgrades were of papers issued by lenders, of which 70% pertained to bonds issued by public sector banks (PSBs).
  
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Each country’s compensation figure is based on the average CEO pay package for companies in one major stock index, weighted by market capitalisation.
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Going by the number of entities upgraded versus the number of downgrades, FY18 presents a positive image with 646 upgrades by rating agency ICRA versus 418 downgrades. But the volume reveals the overall quality of total outstanding debt in the country.
  
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==2018: Infosys and other IT giants’ CEOs==
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As against the Rs 3 lakh crore of downgrades, the volume of debt upgraded in FY18 was only Rs 1.8 lakh crore — up 17% from Rs 1.5 lakh crore in the previous year. The largest proportion of debt rated by ICRA (65%) continues to remain concentrated in the sub-investment grade category. A bulk of the ratings have an ‘ICRA B’ rating, while the median rating category is ‘ICRA BB’. Fund managers consider BBB and above as an investment-grade rating, while those with lower ratings are considered speculative.
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[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F01%2F05&entity=Ar02102&sk=F3FF295A&mode=text  Infy to pay CEO much less than Sikka, January 5, 2018: ''The Times of India'']
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[[File: IT CEO salaries- Infosys, Wipro, Cognizant and TCS.jpg|IT CEO salaries- Infosys, Wipro, Cognizant and TCS <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F01%2F05&entity=Ar02102&sk=F3FF295A&mode=text  Infy to pay CEO much less than Sikka, January 5, 2018: ''The Times of India'']|frame|500px]]
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PSBs, which were hit by bad debt provisions as the RBI tightened income-recognition norms, accounted for a third of downgrade volumes. According to ICRA, the overall quality of Indian debt could worsen in FY19. ICRA head of credit policy Jitin Makkar said in a webinar, “The default rate could go up in fiscal year 2019 on higher interest cost, deteriorating business conditions and likely difficulty in getting bank funding, given the challenges in the banking system.” ICRA said, looking ahead, credit quality pressures will “take longer to dissipate” as hardening interest rates and banking sector woes will create hindrances for businesses.
  
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Infosys will pay about Rs 32.5 crore (approximately $5.12 million) every year to its new chief executive Salil Parekh, subject to his achieving laiddown milestones. That’s significantly lower than the $11 million that former CEO Vishal Sikka was eligible to.
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According to ICRA, telecom, chemicals and healthcare saw weakening performance along with greater number of downgrades than upgrades.
  
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Some of that difference perhaps arises because Sikka was based in the US, while Parekh will be stationed in Bengaluru. But it is also likely a reflection of the unhappiness expressed by the company’s promoters, notably N R Narayana Murthy, on Sikka’s compensation.
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=Periods for which investment is held=
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==As in 2019==
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[[File: MF industry’s holdings over different periods, presumably as in 2019.jpg|MF industry’s holdings over different periods, presumably as in 2019 <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2019%2F08%2F05&entity=Ar01900&sk=C287084D&mode=image  August 5, 2019: ''The Times of India'']|frame|500px]]
  
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Parekh, a former Capgemini executive, will be paid an annual fixed salary of Rs 6.50 crore and a variable portion of Rs 9.75 crore. The latter will be “subject to the company’s achievement of certain milestones as determined by the board or its committee, in its sole discretion, from time to time,” Infosys said in a filing with the BSE late on Wednesday.
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'''See graphic’'':
  
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In addition, the 53-year old executive is also eligible for an annual equity grant of restricted stock units (RSUs) worth Rs 3.25 crore for three years and an annual performance equity grant of RSUs worth Rs 13 crore upon completing three years in 2021 subject to achieving certain milestones. He will also be paid a one-time Rs 9.75 crore in stocks.
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'' MF industry’s holdings over different periods, presumably as in 2019 ''
  
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Sikka, who joined as the first non-founder CEO in August 2014, had a fixed compensation of $3 million, while the remaining $8 million was variable. In his last full year (2016-17), he received only $3.68 million of variable pay because the company did not meet the laid-down milestones.
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=PART C: LEGAL ISSUES=
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=Depositors’ interests=
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==Inter-corporate deposits do not come under MPID Act/ HC==
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[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2019%2F09%2F16&entity=Ar01711&sk=2777E21F&mode=text  Swati Deshpande, Sep 16, 2019: ''The Times of India'']
  
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“The flamboyant western salary and private jet use of Sikka created a major perception issue for Infosys internally. Parekh’s salary seems lower than most of his peers, which is understandable considering this is his first CEO gig,” Phil Fersht, CEO of HfS Research said.
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[[File: The case so far, as on September 16, 2019- Depositors’ interests.jpg| The case so far, as on September 16, 2019- Depositors’ interests <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2019%2F09%2F16&entity=Ar01711&sk=2777E21F&mode=text  Swati Deshpande, Sep 16, 2019: ''The Times of India'']|frame|500px]]
  
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“In reality, Parekh can still make a lot of money from stock and performance, so this is much more about perception than anything else — appeasing Narayana Murthy and the Indian IT aristocracy that Infosys will not behave like a Silicon Valley firm ever again,” he said.
 
  
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Cognizant’s Francisco D’Souza, who is based in the US, received a compensation of $12 million (Rs 76.1 crore) for the year ended December 2016, while TCS’ Rajesh Gopinathan was paid Rs 6.22 crore before he became the CEO. Wipro’s Abidali Neemuchwala, who is based in the US, was paid about Rs 13.3 crore ($2.09 million) for 2016-17.
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The Bombay high court has held that inter-corporate deposits do not come under the ambit of the Maharashtra Protection of Interest of Depositors (MPID) Act, a stringent law meant to protect the interests of small depositors.
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The judgment by a bench of Justices Ranjit More and N J Jamadar was on a petition filed by Ashish Mahendrakar, director of a Yash Birla-promoted company, Birla Power Solutions. The company and its directors are accused under MPID Act of cheating depositors after raising funds for its businesses. The state Economic Offences Wing (EOW) had registered a case in December 2013 on a complaint by the Hajarimal Somani Memorial Trust, which placed a deposit of Rs 1 crore with Birla Power Solutions in 2012 to be repaid with interest. Birla Power Solutions had defaulted.
  
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Dan Marcec, director, content & communications at compensation research firm Equilar, said US tech companies tend to pay their executives more in stock and options than other US companies. According to Equilar’s annual CEO pay report, technology CEOs received the lowest proportion of their total pay from base salary.
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Yash Birla Group has Rs 89 crore of unpaid inter-corporate loans in all. The case argued by Kevic Setalvad and counsel Sunny Punamiya was that such loans or deposits do not fall under MPID Act as they are given by one corporate to another. The company’s assets, including Birla House at Walkeshwar, have been attached. These properties were valued at Rs 525 crore in 2016, said the petition, arguing that it far exceeded the amounts due to investors.
  
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==2018: top CEOs get a raise==
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Special public prosecutor for the EOW of Mumbai police, Prakash Salsingekar, opposed the petition, arguing that the MPID Act — enacted to protect investors — itself enumerates amounts that don’t fall within the term ‘deposits’ and that the “court cannot supplant the exclusion clause by adding an item”, which was not in the law. He argued that a distinction cannot be carved out between depositors as it would defeat the purpose of the Act.
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[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F12%2F27&entity=Ar02108&sk=EF82F509&mode=text&fbclid=IwAR0hurn1irQmlBhwSUWUuqjUF4tl_MggqEAUSiiXaC6khnQNndetpY34ciE  Namrata Singh, Million-$ club CEOs get a raise after 2017 pay decline, December 27, 2018: ''The Times of India'']
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The court held that loan advanced or deposit made by a company with another company registered under the Companies Act would not amount to a “deposit” under the meaning of the MPID Act.
  
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[[File: Average salaries and compensation of Chief Executive Officers, FY15- FY18.jpg|Average salaries and compensation of Chief Executive Officers, FY15- FY18 <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F12%2F27&entity=Ar02108&sk=EF82F509&mode=text&fbclid=IwAR0hurn1irQmlBhwSUWUuqjUF4tl_MggqEAUSiiXaC6khnQNndetpY34ciE  Namrata Singh, Million-$ club CEOs get a raise after 2017 pay decline, December 27, 2018: ''The Times of India'']|frame|500px]]
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The HC analysed provisions of MPID Act, the Companies Act as well as a Tamil Nadu law meant to protect depositors. The Supreme Court, it noted, had said the three Acts were meant to “protect the interests of small depositors from fraud...”. 
  
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''76 Execs See Over 10% Hike In FY18 Against 51 In FY17''
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=See also=
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[[Mutual Funds: India]]
  
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The occupants of the corner office at India Inc earning top dollars have reasons to cheer. Not only has the milliondollar salary club added new members, but the overall compensation too has seen a rise this year.
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After a muted growth last year, the number of executives earning a million dollars in salary (about Rs 6.5 crore) rose to 124 in FY18 from 120, with total compensation jumping 9% to Rs 2,158 crore. According to a study of top 200 listed firms by EMA Partners, commissioned by TOI, the elite club saw a larger number of CEOs/executives — 76 — receiving an over 10% salary jump as compared to 51 last year. The total compensation had declined by 5% to Rs 1,979 crore in FY17.
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The study, which is based on compensation numbers in annual reports, took the conversion rate of the rupee to the
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US dollar at Rs 65. The study covers commissions earned in FY18, but not stock options. An equal number of professional CEOs and promoter CEOs figure in this year’s list, unlike in the past when the former had a bigger presence.
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AM Naik, who retired as L&T chairman last year, tops the elite list with a compensation of around Rs 89 crore, beating the Marans (Kalanithi and Kavery Kalanithi), the promoters of Sun Group, by more than a crore. According to L&T’s balance sheet, Naik earned a little under Rs 3 crore in salary in 2017-18 and a commission of about Rs 9 crore. Retirement benefits of about Rs 78 crore, which include encashment of accumulated leave of Rs 19 crore, a gratuity of Rs 55 crore and pension of Rs 1.5 crore, bolstered his compensation. JSW Group chairman Sajjan Jindal, whose compensation has more than doubled to Rs 49 crore, has stormed into the top 10.
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“Overall CEO compensation continued to maintain its upward momentum as Indian businesses grow in scale and complexity. Indian businesses are quickly catching up or, in some cases, have surpassed their global peers in terms of CEO compensation and are looking to attract the best global talent. We expect this trend to accelerate in the coming years,” said K Sudarshan, regional managing partner (Asia), EMA Partners.
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Commenting on his compensation, Naik said, “It cannot be reckoned as a recurring remuneration since it includes retirement benefits and perquisite value of employee stock options granted in the past. As a company, we are very conscious that increments are linked to profits. We see the profit growth and then decide on increments. There’s a nomination and remuneration committee of four directors which decides remuneration for directors. Corporate HR, on the other hand, proposes increments for all other employees.” Naik said it is logical to have a correlation in the growth of company profits and the growth in the compensation of the CEOs. L&T’s profits rose 22% year-on-year to Rs 7,370 crore in 2017-18.
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Some of the new entrants to the club are P R Venketrama Raja, CMD, Ramco Cements, who earned about Rs 34 crore, Rajesh Gopinathan, CEO & MD of TCS, with earnings of around Rs 12 crore, and N Ganapathy Subramaniam, COO of TCS, who got Rs 9 crore during the year.
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==2020: a 7%  rise==
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[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2020%2F11%2F28&entity=Ar01903&sk=FEE038D8&mode=text  Namrata Singh, November 28, 2020: ''The Times of India'']
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[[File: Millionaire Indian CEOs and their salaries, 2016-20..jpg|Millionaire Indian CEOs and their salaries, 2016-20. <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2020%2F11%2F28&entity=Ar01903&sk=FEE038D8&mode=text  Namrata Singh, November 28, 2020: ''The Times of India'']|frame|500px]]
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Professional CEOs got a raise in 2019-20 even as average salaries of their promoter counterparts dropped due to the slowdown before the pandemic. However, promoter CEOs, on an average, took home a 62% higher compensation than their professional counterparts.
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According to the ‘milliondollar CEO club’ study by EMA Partners, commissioned by TOI, the average salaries of professional CEOs rose 6.5% to Rs 13 crore in 2019-20 and that of their promoter counterparts declined by about 9% to Rs 21 crore. The study is based on a sample of BSE 200 companies and it does not include stock options. Since the study takes into account compensation details in balance sheets for 2019-20, it excludes the trends that may have shaped CXO (including CFO) compensation following Covid.
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The number of CXOs earning a million dollars (Rs 7 crore*) has inched up to 150 from 146 last year. The club is led by the Marans (Kalanithi Maran and Kavery Kalanithi) with a compensation of Rs 87.5 crore, which has remained unchanged (see graphic). Ofthe total, 81 are professional CEOs and 69 are promoters. Overall professional compensation has increased by 1.5%, while promoter compensation has risen by nearly 3%.
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EMA Partners India MD K Sudarshan said, “The trend indicates that promoter CEOs have taken a larger hit on their compensation notwithstanding potential dividend earnings out of their businesses as shareholders. On the other hand, we have seen an increase in the overall compensation for professional CEOs. We believe this anomaly will see a gradual correction.”
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Compensation of promoters like Sajjan Jindal of JSW plunged by nearly 44% to Rs 39 crore in 2019-20. Rajiv Bajaj of Bajaj Auto saw an over 23% jump in his compensation to nearly Rs 40 crore. Among professional CEOs, compensation of Hindalco MD Satish Pai rose 11% during the year to Rs 32 crore. Hindustan Unilever CMD Sanjiv Mehta’s salary rose about 24% to over Rs 16 crore. The remuneration of Rs 48 crore paid to Rohit Philip, who resigned from the post of CFO at IndiGo’s parent InterGlobe Aviation effective from September 15, 2019, however, includes the exit amount under his contract, which is why Philip’s compensation has more than trebled, catapulting him to the top 10 this year.
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Kansai Nerolac Paints VC & MD H M Bharuka said, “If India has to grow, the number of million-dollar CXOs has to increase considerably.” Bharuka, who is also part of the club, said incentives are commensurate with the size, scale, complexities, spread and responsibilities. “The scrutiny, responsibilities and stress which a modern-day CXO faces have been going up. While there are teams to handle specific roles, the buck stops at the CXO’s desk.”
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The gap between the average salaries of promoter (Rs 23 crore in FY19) and professional CEOs (Rs 12 crore, also FY19), which was nearly double, has reduced to 62% in FY20. Bharuka said there is no difference in the role of professional and promoter CEOs in terms of responsibilities. Therefore, compensation of a promoter CEO in comparison to a professional CEO should not be very high just because of ownership, he added.
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[[Category:Economy-Industry-Resources|E CHIEF EXECUTIVE OFFICERS: INDIACHIEF EXECUTIVE OFFICERS: INDIA
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=Cross-industry hiring=
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==2018: highest in e-commerce, retail==
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[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2019%2F02%2F16&entity=Ar02505&sk=C1C14657&mode=text  Namrata Singh, Cross-industry CEO hiring max in e-tail, February 16, 2019: ''The Times of India'']
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[[File: Cross-industry CEO hiring, 2018..jpg|Cross-industry CEO hiring, 2018. <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2019%2F02%2F16&entity=Ar02505&sk=C1C14657&mode=text  Namrata Singh, Cross-industry CEO hiring max in e-tail, February 16, 2019: ''The Times of India'']|frame|500px]]
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''Core Expertise No Longer Key For Leader: Study''
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In 2018, a good 40% of CEO placements were cross-industry hires, while the number was even higher among CXOs at 43%. Today, hiring CEOs/CXOs doesn’t warrant core industry experience in many organisations. This trend also demonstrates the growing demand for contrarians who can bring in fresh perspectives, keeping in view the manifold increase in the threat for disruption of most businesses.
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These observations were drawn from a research project undertaken exclusively for TOI by Executive Access to study the statistical trends of movements of over 220 CEOs and CXOs across industries in the last year.
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While the trend of crosshiring has been amply established, it is more pronounced in industries like e-commerce, consumer/retail and professional services. Cross-industry movement percentages of CEOs in these industries is 80%, 70% and 67%, respectively. A similar trend is seen even in CXO hiring in these three industries.
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Executive Access (India) MD Ronesh Puri said, “There’s a churn happening across different industries but it is very high in e-commerce where there is a constant fear of consolidation. The burnout here also is high.” Being a young industry, cross-sector hiring is being fuelled by the necessity to fill from other industries.
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Bigbasket head (HR) and adviser to the Fundamentum fund for entrepreneurs, Hari T N, said new-age startups in ecommerce and consumer internet are disrupting existing business models. “Smart executives from outside the industry are best at spotting innovation opportunities and creating disruption better than those from within the industry. This is because those from within the industry come with baggage, blind spots and constrained thinking. Therefore, when disruption and innovation is critical for success, it is a better bet to hire someone smart from outside the industry who comes with an open mind and unconstrained thinking,” said Hari.
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However, Hari added when one wants to expand an existing market or grow a mature company, executives from within the industry may have an edge.
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On the other hand, the appetite for cross-industry hiring in industries like pharma/healthcare (29%), core technology companies (25%) and banking, financial services & insurance (BFSI - 15%) are relatively low. The niche nature of most areas of these businesses and the requirement for higher technical specificity in these industries could be driving this conservative trend.
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Consulting, on the other hand, takes sector specialists, which leads to higher incidence of cross-hiring. PwC India leader (people & organisation) Chaitali Mukherjee said, “Industries are evolving rapidly and their very reason for existence is changing. Hence, organisations are keen to get an ‘outside-in’ perspective, since problems are now cutting across industries.”
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In industrial sectors, the trend of cross-hiring is gaining momentum. Executive Access sees cross-industry hiring picking up pace in the coming months. The change could be substantive even in other areas, including diversity cross-industry hiring, which currently is a mere 10%. “Now the confidence levels of people moving has risen. During our placements, we realised two out of three candidates want to move to another industry,” said Puri.
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Mukherjee said leaders of the future are not going to be leaders on account of their industry expertise. Going forward, she said, the ability of the leaders to practise ‘disruptive envisioning’ and ‘multi-dimensional sense-making’ that gets them to think of non-linear problems, in a bold and disruptive manner by connecting discrete and unconnected data points, will be their reason for being reckoned as leaders.
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=Extensions after age 70=
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[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=Super-rich-dont-want-to-retire-08072015029013 ''The Times of India'']
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[[File: Billionaire club, 70+ age.jpg|Billionaire club, 70+ age; Graphic courtesy: [http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=Super-rich-dont-want-to-retire-08072015029013 ''The Times of India'']|frame|500px]]
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Jul 08 2015
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Reeba Zachariah & Boby Kurian
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''' Super rich don't want to retire '''
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Wipro's Premji, Lupin's Gupta Among 234 Seeking Extension As New Cos Act Caps Age Of Those In Executive Role At 70
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About half a dozen billionaires are among the 234 business leaders who are seeking extension of the retirement age, which has been fixed at 70 years under the revamped Companies Act for those serving in a listed company in an executive role.
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Wipro boss Azim Premji, who turns 70 on July 24, is seeking a two-year extension as executive chairman and managing director at the company's annual general meeting slated for July 22. With a net worth estimated at over $16 billion, Premji, India's third richest man, emerges the most influential India Inc name seeking continuation of employment under a more stringent Act.
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Pharma major Lupin's Desh Bandhu Gupta, with a net worth of $6.4 billion, is another billionaire seeking extension as executive chairman for five years through a special resolution at the company's July 23 AGM. “The new Act requires a proper justification and a special resolution with 75% voting in favour to continue with executive powers beyond 70. An age limit was deemed fit since significant public capital is parked with the country's largely promoter-driven companies,“ said Sai Venkateshwaran, partner and head of accounting advisory services at KPMG. This applies to those with executive functions and not independent directors.
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Premji's desire to not hang up his boots is putting the spotlight on the so-called `Club of 70s', which includes the likes of Adi Godrej, KP Singh (of DLF), who have all got extensions under the previous Act to continue to lead their companies.
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Wockhardt's Habil Khoraki wala, with a promoter stake worth $2 billion, also sought a similar continuation earlier this year. Adi Godrej continues to steer his family's interest, estimated at $4.8 billion, in Godrej Consumer Products as does K P Singh with a $2.5-billion stake in DLF . Kirpal Singh, 89, who heads Dolphin Offshore Enterprises as chairman, is the oldest executive head currently . Other veterans include P R S Oberoi (86) of EIH and C Prathap Reddy (83) of Apollo Hospitals Enterprises.
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Most of them control a signif icant block of shares, giving them enough comfort to seek extensions even under the stringent, new rules. Premji and DLF's Singh control around 74% shares each in their companies, while Godrej has 63% and Lupin's Gupta 46%. L&T Group executive chairman A M Naik, probably the mostinfluential professional executive head past his retirement age, sought continuation under the old rules and has two more years at the helm unless he seeks another extension.
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Wipro's special resolution recalls how Premji, who joined the business in the 1960s, turned a $2-million business into a $7.5-billion entity and India's third largest software exporter.While Premji's extension is set to sail through in the upcoming shareholder meeting, there have been minority investor rebellions against older executive heads in some of the lesserknown listed companies.
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Some minority shareholders of Ultramarine & Pigments have written to the company that its executive chairman R Sampath, who is past 70, should step down. But the company said it has robust legal advice stating no requirement for a fresh ratification until Sampath's current tenure under the old Act ends.
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=Why South Asians pip East Asians to top roles=
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==MIT, Columbia, Michigan study/ 2020==
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[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL/2020/07/08&entity=Ar01507&sk=AB5AC542&mode=text  July 8, 2020: ''The Times of India'']
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[[File: 2010-17- US CEOs from South Asia vis-à-vis East Asia.jpg|2010-17: US CEOs from South Asia vis-à-vis East Asia <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL/2020/07/08&entity=Ar01507&sk=AB5AC542&mode=text  Why South Asians pip East Asians to top roles in US, July 8, 2020: ''The Times of India'']|frame|500px]]
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'' Assertive Communication Key Differentiator: Study ''
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A recent study has shown that East Asians (Chinese, Japanese, Koreans) are less likely than South Asians (Indians, Pakistanis, Bangladeshis) and whites to attain leadership roles in American organisations.
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Researchers from MIT Sloan School of Management, Columbia Business School and the University of Michigan examined this problem to understand the scope and root causes of what is referred to as the ‘Bamboo Ceiling’ — as bamboos have played an economic and cultural role across Asia.
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The research focused on three key aspects — prejudice, motivation and assertiveness, and found that East Asians lose out on leadership roles as compared to South Asians due to the cultural differences in communication and assertiveness.
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“Strongly influenced by Confucianism, East Asian cultures encourage humility, harmony, and stability. East Asians may be culturally less inclined to speak up and assert their opinions,” said Jackson Lu, Mitsui career development professor at MIT Sloan School of Management.
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“By contrast, South Asian cultures encourage debate and argumentation, as discussed in Nobel laureate Amartya Sen’s book The Argumentative Indian. Mainstream American culture encourages assertive communication too. So even when East Asians are just as competent and interested in leadership opportunities as their South Asian and white counterparts, they may come across as less suited for leadership in the US,” he said.
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Lu said the Asians are known as the model minority in the US. They have the highest education, highest income, lowest crime rate and lowest unemployment rate and, if that’s the case, one expects Asians to be overly represented in leadership positions in the US. “Then I thought we have a lot of South Asian leaders if you think about the CEOs of IBM, Google, Microsoft, Mastercard, PepsiCo, Adobe, all of these leaders are South Asians. I couldn’t really think of any East Asians. That’s puzzling for me. For example, if both East Asians and South Asians are doing so well, why is it the case that we don’t see any East Asians? There is such a large amount of research on the glass ceiling faced by women. But we know so little about the Bamboo ceiling,” Lu told TOI, while explaining the reasons for undertaking the study.
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To understand the issue, nine studies were undertaken by the researchers and data was collected from 2010 to 2017 on the CEOs of S&P 500 companies. According to one study, in the population of S&P 500 CEOs, there were on an average 10.38 South Asian CEOs compared to about 3.5 East Asian CEOs.
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“The fundamental culprit here is that East Asians’ communication style is misaligned with American leadership expectations. A non-assertive style is perceived as a lack of confidence, motivation, and conviction. People can learn multiple styles of communication and how to code-switch between them. As American organisations become more diverse, they need to diversify the prototype of leadership and look beyond assertiveness for evidence of leadership aptitude,” Michael Morris, the Chavkin-Chang Professor of Leadership at Columbia Business School, one of the authors of the study, was quoted as saying.
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Revision as of 11:57, 12 June 2021

This is a collection of articles archived for the excellence of their content.
Additional information may please be sent as messages to the Facebook
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acknowledged in your name.



Contents

India’s investable, personal wealth

2017: India was no.11 in the world

India’s personal wealth may grow at 13%: Report, October 9, 2018: The Times of India


The US leads the chart in terms of total personal wealth with $80 trillion in 2017, which is projected to touch $100 trillion by 2022. China is ranked second, with a total personal wealth of $21 trillion, which is expected to more than double to $43 trillion by 2022.

The report noted that India constitutes the second largest pool of wealth from emerging markets in the coming years, with $2.2 billion. It is the fifth largest Asian market in number of affluent, high net worth, and ultra high net worth individuals. There were 322,000 affluents, 87,000 high net worth individuals and 4,000 ultra high net worth individuals in the country in 2017, according to the report. It observed that nearly 70% of the country’s personal financial wealth would be accessible to wealth managers in 2022.

The 70% investable wealth in the country includes listed equity, bonds, investment funds, currency and deposits, and other smaller asset classes, while 30% non-investable wealth includes life insurance and pensions, unlisted equity and other equity.

Investment in stock markets, banks, mutual funds, gold

1995-2015

The Times of India, Nov 02 2015

Uma Shashikant

 Much has changed in the way India invests since 1995, and mostly for the better

Everyone is celebrating 20-year milestones these days. The nice thing about history is that we can attempt to explain the present by looking at the past, with the benefit of hindsight. What then seemed tough, foolish and difficult, seems pathbreaking today. Then there are things that do not change, ever. It's my turn to do the 20-year flashback this week. Stock markets

In June 1994, a new wholesale market for debt was set up. Funded by institutions, it used the best satellite technologies and tried to create a market where institutions would buy and sell debt securities.But the debt markets in India were not ready for it. The leaders changed course and deployed the systems to create a new equity market. It wasn't easy .

Equity markets were already being served by 20+ stock exchanges, the oldest and largest in the same city as the new one. The new market went ahead nevertheless, permitting trades in equity shares listed on other exchanges on its satellite-linked electronic system.

In 1995, the experiment succeeded.The new market overtook the old in business. The National Stock Exchange (NSE) is an example of how a new entity can bring about positive change. How it can create a new system with higher efficiency , lower costs, wider participation, better technology and higher integrity .NSE modified how investors trade in India, creating a trading, clearing and settlement system on par with the best.

Banks

In January 1995, HDFC Bank opened its first branch in Mumbai. In March 1995, it offered shares to the public in an IPO priced at `10 per share, to mobilise `50 crore. The issue was oversubscribed 55 times and opened to trade at `40. The popular opinion was that the bank would soon merge with its illustrious parent.

All through the 1990s, public sector banks hogged the limelight for their equity offerings. No one gave private sector banks much of a bright prospect.

The PSU banks were well entrenched.They were bankers to the government and public entities. The cost of funds for the public sector banks was low, and the regulatory requirements was uniformly applicable to the new private banks too.If the new banks tried to bring in sophistication and technology , they had to face competition from foreign banks, that held a monopoly over the NRI and remittance businesses, apart from working with the large private corporate treasuries. Where was the room for new private banks? Twenty years on, private banks have built a new retail lending market that is large and growing. They have captured a large share of the institutional business. They offer superior technologies and service, and have managed to do so at a lower cost compared to their public sector counterparts, and have stronger, better and bigger balance sheets.

Mutual Funds

If one looked at mutual funds in 1995, UTI dominated with over 90% market share.While the other players were trying to find their feet, UTI was launching a slew of monthly income plans (MIPs) which promised double digit returns. The other public sector mutual funds were suffering the consequences of faulty product launches in 1991-92. They had sold 7-year closed end equity funds, with the promise of doubling and tripling the returns, and the NAVs were nowhere near target.

The new private sector funds did their best to market their products, but did not mobilise much money from investors who were worried about the lack of liquidity . Mutual funds had to list on the market and it was common for prices to be lower than the NAV . Approvals were tough to get. Banks and institutions were not selling funds, yet.

It was in 1995 the first wave of process innovation hit the mutual fund industry with open-ended funds with account statements and no certificates. Dividend and growth options were offered and banking distribution was tied up. But the struggle was with the idea of assured returns that investors clamoured after.

In 1995, when global investors were asking for depository and T+3 rolling settlement, what we had then seemed rudimentary . Today, the NSE has helped set up several stock markets across the world and is a model for risk management and settlement guarantees. In 1995, it seemed banking belonged to the public sector.Today , the success of private banks has established that PSU banks will have to restructure or fade away .

As for mutual funds, there is enough evidence to establish that a diversified portfolio over the long run beats all other investment options. But investors seem busy trading stocks and investing in bank deposits, and not engaging enough with funds. The plague of new schemes sold with inflated promises and performing schemes staying in the background has not changed. Not in 20 years.

2007-16

The Times of India, Feb 02 2017

1,3,5 and 10 year return, accoring to asset class, Jan 1 2016-Dec 31, 2016; The Times of India, Feb 02 2017
Steps to make one's career the best asset; The Times of India, Feb 2, 2017
Steps to make one's career the best asset2; The Times of India, Feb 2, 2017
10 rules for investment, how fast will one's money grow, a legal aspect; The Times of India, Feb 02 2017
How fast will one's corpus erode, a legal aspect; The Times of India, Feb 02 2017
Some other rules to take care of investment; The Times of India, Feb 02 2017
How to consider oneself wealthy; The Times of India, Feb 02 2017

No one asset outperforms others consistently over time. In the past one year, equity mutual funds and government securities gave higher returns than other assets. Over 10 years, it's gold that beats all other asset classes. For consistent long-term gains, put your eggs in several baskets. Of course, returns is only one of the three criteria to look for before investing--safety and liquidity are the other two. Government securities, the safest investment option, matched returns from equity funds last year. But this is a rare occurence

2008, 2014-19

2008, 2014-19: household savings in India
From: February 2, 2020: The Times of India

See graphic:

2008, 2014-19: household savings in India

2011-18: household savings

India’s household financial savings at a new high, November 30, 2018: The Times of India

2011-18: household savings in India
From: India’s household financial savings at a new high, November 30, 2018: The Times of India


The share of financial savings by Indian households has touched a high of 11.1% of gross national disposable income (GNDI). However, the share of deposits, which rose to a high of 6.3% on the back of demonetisation in 2016-17, has shrunk to 2.9% of GNDI. But households are borrowing much more, as reflected in the financial liabilities, which has grown to a high of 4%.

2016: FDs top

FDs most preferred saving option: Survey, April 6, 2017: The Times of India

Why households avoid equities; FDs most preferred saving option: Survey, April 6, 2017: The Times of India


More than 95% households prefer to park their money in bank deposits, while less than 10% opt to invest in mutual funds or stocks. Life insurance was the second most preferred investment vehicle, followed by precious metals, post office savings instruments and real estate, a survey by Sebi showed. It also showed that mutual funds came in at the sixth place (9.7%), followed by stocks (8.1%), pension schemes, company deposits, debentures, derivatives and commodity futures (1%) as investment vehicles for the urban households. Respondents were allowed to select multiple options.

The survey , conducted across urban and rural areas of the country , showed that among rural households, not even 1% of the survey respondents were investors, while even the awareness about mutual funds and equities was dismal at just 1.4%.

However, 95% of rural survey respondents had bank accounts, 47% life insurance, 29% post office deposits and 11% saved in precious metals. On a positive note, the survey found the investor base in India increasing, as nearly 75% of the respondents said they had participated in securities markets for the first time in the last five years. The survey had a sample size of 50,453 households and using a bootstrapping methodology , it was estimated there were a total of 3.37 crore investor households in India. Of these, 70% reside in urban areas.

2017: 8 lakh crore equities and mutual funds

Indians invested more in stocks than in FDs in FY17, December 13, 2017: The Times of India


Total wealth, in FDs & bonds, stocks, insurance, savings deposits, PF, MFs and others, FY16, FY17
From: Indians invested more in stocks than in FDs in FY17, December 13, 2017: The Times of India

Indian investors are finally moving from bank fixed deposits (FDs), real estate and gold, the traditional investment products, to equities and mutual funds. In fiscal 2017, Indians invested Rs 8 lakh crore in stocks compared to Rs 3.4 lakh crore in FDs.

At the end of FY17, total investments by Indians in equities at Rs 37.6 lakh crore was just Rs 2.5 lakh crore short of total FDs, pegged at Rs 40.1 lakh crore. This is the closest that the total equity wealth of Indian investors have ever come to bank FDs, a report by Karvy Private Wealth showed. At the end of FY16, the difference was over Rs 7 lakh crore with Rs 36.8 lakh crore in FDs compared to Rs 29.6 lakh crore in stocks, the report showed.

The firm believes total investments by Indians in equities will surpass wealth in bank FDs by the end of the current fiscal. “After losing a bit of traction, financial assets have regained their pole position in FY17. Wealth creation through equities has not been restricted to big institutional investors as individual participation, too, saw a huge jump via the direct as well as mutual funds route,” said Abhijit Bhave, CEO, Karvy Private Wealth.

2018-19: Realty, gold top picks for HNIs

Rupali Mukherjee, August 30, 2019: The Times of India

HNIs, their investments and leisure activities: presumably as in 2018-19
From: Rupali Mukherjee, August 30, 2019: The Times of India

Real estate is the most preferred investment asset class for high net-worth individuals (HNIs) in next 3 years, followed by stock markets, according to the Hurun Indian Luxury Consumer Survey. This is despite the slowdown in real estate witnessed over the last three years, and turbulence in stock markets over the past 18 months. This is the first year of an India survey by Hurun Research Institute, which aims to track changes and preferences of lifestyle, consumption habits and brand cognition of HNIs.

Around 31% respondents believe that their investment allocation towards real estate sector will grow in the next two years. In line with IMF’s prediction of economic growth, equity markets followed by fixed income is the second and third choice, respectively. Interestingly, 21% respondents want to reduce allocation to real estate in the short term, and around 20% want to reduce exposure to gold. While 9.5% said investments into real estate will be at a status quo, the remainder believed that it would decline.

The UK is the most popular investment destination for HNIs. Singapore takes second place, and Canada along with the US, which is forecast to grow 2-4% (at constant exchange rates this year), rank third. Nearly a fourth (24%) are “very confident” about the Indian economy over the next three years, 40% “confident”, while around 36% are pessimistic. As many as 36% of HNIs said their investment philosophy for this year would be “avoiding risk”, while only 14% will make “active investments”.

Among collectibles, HNIs prefer to spend the most on art and jewellery. Nearly half the respondents have two to three cars, 37% have only one car and 6% have more than five cars. Up to 46% of them renew their car every three to four years.

2019

[ Oct 27, 2019: The Times of India]

Wealth held by individual Indians in physical form, 2019
From:

See graphic, ‘Wealth held by individual Indians in physical form, 2019 '

As in 2021 Jan


From: February 2, 2021: The Times of India

See graphic:

Investment in stock markets, banks, mutual funds, gold, in the period ending 2021 Jan

Returns

2006-15

Returns from stocks, gold and fixed income in India, 2006-15; Graphic courtesy: The Times of India

See graphic:

Returns from stocks, gold and fixed income in India, 2006-15

2007-2017

Safe investments vs. riskier ones

See graphic:

Returns on equity funds, gilt funds, gold ETFs and liquid funds, 2007-2017

Returns on equity funds, gilt funds, gold ETFs and liquid funds, 2007-2017
From: NARENDRA NATHAN, December 18, 2017: The Times of India

Saving habits

2011-16: Indians invest more in equity, debt

2011-16: Investment by individual Indians in shares, bank deposits, insurance.

Allirajan M, Indians invest more in equity, debt, Sep 29 2016 : The Times of India

Indian households are increasingly putting more money in equities and debentures. Investments by households in shares and debentures jumped 72.2% year-on-year (yo-y) or by `38,491crore to `91,763 crore in 2015-16, Reserve Bank of India (RBI) data showed.

In contrast, their investments in bank deposits advanced by a mere 3.8% y-o-y or by `22,594 crore to around `6.16 lakh crore.

Household investments in shares and debentures have surged more than five times between 2012-13 and 2015-16. But their savings in bank deposits have moved up by a measly 7.1% during the timeframe, RBI data showed. Incidentally, households held a record `6.48 lakh crore in bank deposits in 2013-14. Household investments in life insurance products, another favourite, increased 9.8% y-o-y to around `2.72 lakh crore.

The interest in equities and debentures has been growing at a robust pace over the last three years. The steady decline in interest offered by banks for deposits following a series of rate cuts by the RBI has acted as a dampener for those looking to invest in traditional instruments such as FDs. Though there have been corrections, equity markets have risen steadily in last three years with benchmark indices hitting new highs.

2011-18

August 31, 2018: The Times of India

2011-18- The kinds of personal investments that Indians made
From: August 31, 2018: The Times of India

Indian families held a record share of their income in the form of cash in 2017-18. Preference for cash is usually a sign of risk aversion. But in the same year, share of savings in stocks grew over 4 times, reflecting higher risk acceptance. Since Indians are also investing more in pensions and keeping much less of their incomes in deposits than before it’s safe to assume that spike in cash is a temporary effect of the cash drought caused by demonetisation in 2016-17. Overall, Indians are saving more, and better, than before

2013-15: Saving habits

Some facts about investment patterns in India; Graphic courtesy: The Times of India, February 20, 2016

See graphic:

Some facts about investment patterns in India

2014-18, state-wise

September 4, 2018: The Times of India

The saving habits of Indians, 2014-18, state-wise
From: September 4, 2018: The Times of India

See graphic:

The saving habits of Indians, 2014-18, state-wise

Investors in Gujarat are biggest risk-takers with 42% of their mutual fund money going into equities. Investors in Bengal, with 38% of their money in equities, are not far behind and do better than Delhi (36%), Karnataka (36%) & Maharashtra (32%)

2017: even the poor and young want real estate, gold

Subodh Varma, Balance Sheet Of Indian Families A Matter Of Life And Debt, September 7, 2017: The Times of India

Assets and liabilities as % of total wealth of households in India, China, Germany, the USA and the UK, 2017; Subodh Varma, Balance Sheet Of Indian Families A Matter Of Life And Debt, September 7, 2017: The Times of India

Indian families borrow and invest in very different ways than families in the US, UK or Germany , and even those in China. The depth of these differences, across all ages and economic levels, is revealed in a recent report on household finances prepared by the RBI.

It shows that a major proportion of household wealth in Indian families is kept as real estate or gold, even among younger families, and even by the poorest 40% of population.

This is not the case in other countries. Institutional borrowings by Indian families are low in early life and go on increasing leaving many retired persons with a debt overhang, unlike advanced countries where mortgages reduce after retirement.And, pensions are virtually absent in India while in most Western countries they are a major asset in old age.

More than three quarters of family wealth is invested in real estate (land and dwelling units) by an average Indian family compared to just 44% in the US, and 37% in UK and Germany . In China, about 62% of wealth goes into real estate. Even among the poorest 20% of the population, 59% have some land or dwelling unit in India, while in China, the similar proportion is 61%.

But in the rich countries a minuscule share of the poorest quintile has real estate -4% in US, and less than 1% in UK and Germany .

This may sound bizarre considering India's poverty but here is the thing: average value of the main residence in the poorest Indian households is Rs 22,000, while it is Rs 15 lakh in Germany and Rs 3.7 lakh in the US.

The RBI report is talking of proportion of different types of family wealth. Their absolute values are obviously very different.

Besides real estate, the other main target of investment in India is gold. About 11% of family wealth goes into buying gold. Families in other countries spend virtually nothing on this, with the Chinese spending a mere 0.4% of their wealth on gold. Indian families also have gold loans amounting to about 8% of their total liabilities, again a feature not found anywhere else.

“Most households use debt to cope with emergency expenses, such as hospitalisation, or property damage due to a natural disaster. The interest rates on unsecured debt are very high. Therefore, households prefer to put their savings in real estate and gold, which can also be used as collateral,“ RBI's Household Finance Committee chairman Tarun Ramadorai of Imperial College, London, told TOI. Detailed data on countries drawn from various surveys is available in a paper by Ramadorai and coauthors published in 2017.

Although 73% of families in India have financial assets like cash, bank accounts and pension accounts, they hold very small amounts adding up to just 5% of their total wealth, he added.

Medical emergencies, especially among the elderly , are one of the main reasons why families in India seek loans at usurious rates from money lenders. Such unsecured loans make up nearly 56% of all liabilities for Indian families, much higher than China at 26%, US (13%) and Germany (24%). The RBI report notes that “some of these risks could be mitigated through strengthening the public provision of health and social welfare services.“

Indian families are also exceptional in that housing loans are low in early life and rise beyond retirement ages.In other countries such loans rise in middle age but fall off at retirement. This happens because Indian families borrow later in life and it is customary to bequeath property to future generations who in turn look after the elderly.

These traditional structures are increasingly under pressure from shifting demographic patterns, social norms, and changing economic conditions, introducing risks to economic well-being especially as households age, the report says.

Small savings

Small savings rates/ April 2015- August 2016

Small savings rates, April 2015- August 2016; Graphic courtesy: The Times of India, September 12, 2016

See graphic, 'Small savings rates, April 2015- August 2016'

2017-18

Small savings in India, state-wise, 2017-18
From: April 2, 2021: The Times of India

See graphic:

Small savings in India, state-wise, 2017-18

Post offices vs banks/ 2018

Savings in Post offices vs banks, state-wise / 2018
From: April 20, 2021: The Times of India

See graphic:

Savings in Post offices vs banks, state-wise/ 2018

Gold Bonds

2019: benefits of different types of bonds

July 2, 2019: The Times of India

2019: the benefits of different types of gold bonds and physical gold
From: July 2, 2019: The Times of India

You can now hold gold in either its physical form or on paper — through gold bonds or through mutual funds that trade in gold. What should you do? The answer depends on what you are looking for. If you want liquidity, and are planning to take a loan against your stock of gold, then physical gold is your best bet. But, remember, you will need to pay a capital gains tax when you sell physical gold. But if you are looking at gold as a long-term investment, then a gold bond is what you might want to go for. Not only are you spared capital gains tax when you redeem these, you also earn a small interest. A look at the different options that are now available

Systematic investment plans

2016>18: a 53% increase in inflows

Allirajan M, MF SIP kitty crosses $10bn mark in FY18, April 18, 2018: The Times of India

SIP contribution, January-March, 2017-18
From: Allirajan M, MF SIP kitty crosses $10bn mark in FY18, April 18, 2018: The Times of India

Sees 53% Jump From FY17, Mobilises Record $1Bn In Mar

There is no stopping the mutual fund SIP juggernaut. Investors have committed about $10.3 billion (Rs 67,190 crore) through SIPs (systematic investment plans), the bedrock of inflows into equity MFs, in 2017-18, a massive 53% increase over the previous financial year. This is the highest ever mobilisation in a financial year.

Inflows into SIPs stood at around $1.1 billion (Rs 7,119 crore) in March alone, the highest ever for a month. MF SIP accounts stood at 2.11 crore at the end of March, data with the Association of Mutual Funds in India (AMFI) showed. Incidentally, the total number of SIP accounts crossed the 1 crore mark only in August 2016.

SIP is an investment option offered by fund houses where one could invest a fixed amount in an MF scheme periodically at fixed intervals—say once a month instead of making a lump-sum investment. The SIP instalment amount could be as small as Rs 500 per month. SIP is similar to a recurring deposit where you deposit a small /fixed amount every month.

The MF industry added 9.70 lakh SIP accounts on average each month during 2017-18 against an average of 6.27 lakh SIP accounts added each month during 2016-17. AMFI data showed. The average SIP size was about Rs 3375 per SIP account.

SIPs are done almost entirely in equity schemes. The fixed income segment contributes only about 5% in volume terms and about 2% in value terms to overall SIPs. SIP is a convenient method of investing through standing instructions to debit the investor’s bank account every month, without the hassle of having to write out cheques.

“SIPs account for 50% of new MF accounts. They have become a brand of their own,” says Raghav Iyengar, executive vice president, ICICI Prudential MF. “SIPs have been getting traction as investors are not trying to time the market,” says Srikanth Meenakshi, co-founder and COO, Fundsindia.com, an investment platform for MFs.

“The fast pace of growth (in SIPs) is due to the network effect. People are buying MFs through SIPs as most others are doing so,” he explains. “This is the one of the easiest ways to start a new investment,” Raghav says.

Upgrades, downgrades

2016> 2018

Nearly ₹3L-cr bonds downgraded in FY18, April 3, 2018: The Times of India

Bonds upgraded or downgraded in 2016, 2017 and 2018
From: Nearly ₹3L-cr bonds downgraded in FY18, April 3, 2018: The Times of India


Default Rate May Go Up In Current Financial Year On Higher Interest Cost, Says ICRA

The quality of Indian debt soured considerably in FY18 with Rs 3 lakh crore worth of bonds being downgraded compared to Rs 1.7 lakh crore in FY17. Over half the downgrades were of papers issued by lenders, of which 70% pertained to bonds issued by public sector banks (PSBs).

Going by the number of entities upgraded versus the number of downgrades, FY18 presents a positive image with 646 upgrades by rating agency ICRA versus 418 downgrades. But the volume reveals the overall quality of total outstanding debt in the country.

As against the Rs 3 lakh crore of downgrades, the volume of debt upgraded in FY18 was only Rs 1.8 lakh crore — up 17% from Rs 1.5 lakh crore in the previous year. The largest proportion of debt rated by ICRA (65%) continues to remain concentrated in the sub-investment grade category. A bulk of the ratings have an ‘ICRA B’ rating, while the median rating category is ‘ICRA BB’. Fund managers consider BBB and above as an investment-grade rating, while those with lower ratings are considered speculative.

PSBs, which were hit by bad debt provisions as the RBI tightened income-recognition norms, accounted for a third of downgrade volumes. According to ICRA, the overall quality of Indian debt could worsen in FY19. ICRA head of credit policy Jitin Makkar said in a webinar, “The default rate could go up in fiscal year 2019 on higher interest cost, deteriorating business conditions and likely difficulty in getting bank funding, given the challenges in the banking system.” ICRA said, looking ahead, credit quality pressures will “take longer to dissipate” as hardening interest rates and banking sector woes will create hindrances for businesses.

According to ICRA, telecom, chemicals and healthcare saw weakening performance along with greater number of downgrades than upgrades.

Periods for which investment is held

As in 2019

MF industry’s holdings over different periods, presumably as in 2019
From: August 5, 2019: The Times of India

'See graphic’:

MF industry’s holdings over different periods, presumably as in 2019

PART C: LEGAL ISSUES

Depositors’ interests

Inter-corporate deposits do not come under MPID Act/ HC

Swati Deshpande, Sep 16, 2019: The Times of India

The case so far, as on September 16, 2019- Depositors’ interests
From: Swati Deshpande, Sep 16, 2019: The Times of India


The Bombay high court has held that inter-corporate deposits do not come under the ambit of the Maharashtra Protection of Interest of Depositors (MPID) Act, a stringent law meant to protect the interests of small depositors. The judgment by a bench of Justices Ranjit More and N J Jamadar was on a petition filed by Ashish Mahendrakar, director of a Yash Birla-promoted company, Birla Power Solutions. The company and its directors are accused under MPID Act of cheating depositors after raising funds for its businesses. The state Economic Offences Wing (EOW) had registered a case in December 2013 on a complaint by the Hajarimal Somani Memorial Trust, which placed a deposit of Rs 1 crore with Birla Power Solutions in 2012 to be repaid with interest. Birla Power Solutions had defaulted.

Yash Birla Group has Rs 89 crore of unpaid inter-corporate loans in all. The case argued by Kevic Setalvad and counsel Sunny Punamiya was that such loans or deposits do not fall under MPID Act as they are given by one corporate to another. The company’s assets, including Birla House at Walkeshwar, have been attached. These properties were valued at Rs 525 crore in 2016, said the petition, arguing that it far exceeded the amounts due to investors.

Special public prosecutor for the EOW of Mumbai police, Prakash Salsingekar, opposed the petition, arguing that the MPID Act — enacted to protect investors — itself enumerates amounts that don’t fall within the term ‘deposits’ and that the “court cannot supplant the exclusion clause by adding an item”, which was not in the law. He argued that a distinction cannot be carved out between depositors as it would defeat the purpose of the Act. The court held that loan advanced or deposit made by a company with another company registered under the Companies Act would not amount to a “deposit” under the meaning of the MPID Act.

The HC analysed provisions of MPID Act, the Companies Act as well as a Tamil Nadu law meant to protect depositors. The Supreme Court, it noted, had said the three Acts were meant to “protect the interests of small depositors from fraud...”. 

See also

Mutual Funds: India

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