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Despite job cuts, CEOs demand more pay
By
siliconindia news bureau
New Delhi: A growing number of the best-paid and most sought-after executives are revealing a dark, opportunistic and irresponsible side, accepting plum offers in the CEO, CXO series and then failing to show up at work on the joining date because they have used the first offer to negotiate a better deal, either with their present employer or in another company, according to the top global executive search firms.
Estimate states that India's top seven executive search firms handle 705 senior search mandates annually, of which 60 percent or 423 are for CXOs. Out of these, 10 percent to 20 percent or 85 walk away from the commitment at the very last minute, reported Times of India.
Top-deck job-hopping is fine, but not at the cost of their integrity. "In one case, first-class travel for the new CEO was organized across Europe and the U.S., internal company announcements were sent out to prepare the team for his arrival, a welcome party and briefing sessions scheduled. The candidate did not show up on the day that he was supposed to join and even refused to answer our calls," says a search consultant.
"Financial damage is just one dimension. The company's board starts to challenge the chairman and the hiring team about the value proposition of getting external talent. It is a terrible loss of face for all concerned," says Sanjiv Sachar, partner, Egon Zehnder International. According to Sachar, the confidentiality of the search process and the huge demand for leaders is making candidates reckless about spoiling their relationships within the industry.
He said, "While such candidates are blacklisted for life within the search firms, the fact that there is no sharing of information about such individuals within the industry allows these defaulters an easy getaway."
Estimate states that India's top seven executive search firms handle 705 senior search mandates annually, of which 60 percent or 423 are for CXOs. Out of these, 10 percent to 20 percent or 85 walk away from the commitment at the very last minute, reported Times of India.
Top-deck job-hopping is fine, but not at the cost of their integrity. "In one case, first-class travel for the new CEO was organized across Europe and the U.S., internal company announcements were sent out to prepare the team for his arrival, a welcome party and briefing sessions scheduled. The candidate did not show up on the day that he was supposed to join and even refused to answer our calls," says a search consultant.
"Financial damage is just one dimension. The company's board starts to challenge the chairman and the hiring team about the value proposition of getting external talent. It is a terrible loss of face for all concerned," says Sanjiv Sachar, partner, Egon Zehnder International. According to Sachar, the confidentiality of the search process and the huge demand for leaders is making candidates reckless about spoiling their relationships within the industry.
He said, "While such candidates are blacklisted for life within the search firms, the fact that there is no sharing of information about such individuals within the industry allows these defaulters an easy getaway."
Reader's comments(25)
1
Well, I agreewith some of you on your opinions. What remains at the end of this
is the fact that how shallow and unethical such people can be who are handed the
responsibility to be mentors and leaders for the junior people in organizations.
I would like to ask what moral, etical , leadership skills are these people
passing on to the future leaders in these organizations. It is indeed very sad
and upsetting that on one hand India is supposedly progressing but on the other
hand every one seems to be involved in this roadside haggling game. I have
worked in may different countries but I have never experienced the kind of
standards that are followed here. No one believes in quality, price is what
matters most.
is the fact that how shallow and unethical such people can be who are handed the
responsibility to be mentors and leaders for the junior people in organizations.
I would like to ask what moral, etical , leadership skills are these people
passing on to the future leaders in these organizations. It is indeed very sad
and upsetting that on one hand India is supposedly progressing but on the other
hand every one seems to be involved in this roadside haggling game. I have
worked in may different countries but I have never experienced the kind of
standards that are followed here. No one believes in quality, price is what
matters most.
Posted by:
Kuunal
2
One thing is a known fact that is only the suitable candidates get the
bargaining. Those who deserve it only get the right price. Sorry for that wicked
thought :)
bargaining. Those who deserve it only get the right price. Sorry for that wicked
thought :)
Posted by:
Karandeep Malik
3
I would like to give it another angle. The Consultancy firms, which have been
depicted here as the ones on the receiving end are sometimes themselves involved
in the bargaining process.
depicted here as the ones on the receiving end are sometimes themselves involved
in the bargaining process.
Posted by:
Karandeep Malik
4
To me it seems to be an issue with the Values inculcated into these individuals
The Upbringing. So, its really hard to figure this out during an interview,
because these guys have mastered the art of *Fooling* people. Well, it doesnt
mean *All*, but yes most of them are like that.
I have come across many CEO/Executives who have had a turbulent Past, but they
still move on to take up more *Enticing* roles and responsibilities.
Bad CEO/Executive/Board recruits a BAD CEO.
Let me know your thoughts.
The Upbringing. So, its really hard to figure this out during an interview,
because these guys have mastered the art of *Fooling* people. Well, it doesnt
mean *All*, but yes most of them are like that.
I have come across many CEO/Executives who have had a turbulent Past, but they
still move on to take up more *Enticing* roles and responsibilities.
Bad CEO/Executive/Board recruits a BAD CEO.
Let me know your thoughts.
Posted by:
D. Kapoor
5
Where is the problem here? The issue power, not venality.
It would be useful if the recruiting fraternity learn to identify the motives of
the job seeker, at any level. A great offer is used as a bargaining chip at most
levels. As long as employers and recruiters succumb to this form of blackmail,
blaming the individual will solve nothing.
It would be useful if the recruiting fraternity learn to identify the motives of
the job seeker, at any level. A great offer is used as a bargaining chip at most
levels. As long as employers and recruiters succumb to this form of blackmail,
blaming the individual will solve nothing.
Posted by:
Partho Datta
6
This is a shame.
Posted by:
Anand
7
it is common to see people at lower level and lower management level hop jobs
at will. there is a work culture erosion and if the top level behaves this way
what kind of role model they will become and what can they expect from their
subbordinates. i feel there should be a stringent verification of integrity of
a person, a company should have a legal recourse available so that these chiefs
dont get away with their game plan without punishment.
at will. there is a work culture erosion and if the top level behaves this way
what kind of role model they will become and what can they expect from their
subbordinates. i feel there should be a stringent verification of integrity of
a person, a company should have a legal recourse available so that these chiefs
dont get away with their game plan without punishment.
Posted by:
nagraj panchawati
8
Atleast they should have the courtesy and guts to say no to certain things and
if they are not interested why are they thinking that others time are not
valuable. At one stage they would also get the same back to them
TIT for TAT
if they are not interested why are they thinking that others time are not
valuable. At one stage they would also get the same back to them
TIT for TAT
Posted by:
Sriram
9
It is a shame that in a land where spiritual giants have taken birth and where
the world considers it to be the fountainhead of spirituality people have become
the greediest and the most callous. It is a SHAME.
I have lived both in India and abroad and have ironically seen that in spite of
an apparent portryal of materialism in the West people seem to give and care for
their communities more than we in India do.
the world considers it to be the fountainhead of spirituality people have become
the greediest and the most callous. It is a SHAME.
I have lived both in India and abroad and have ironically seen that in spite of
an apparent portryal of materialism in the West people seem to give and care for
their communities more than we in India do.
Posted by:
Sampath
10
There's nothing wrong in this coz everyone is living here for his/her own
benefit. They simply showing their selffishness which is not wrong..
benefit. They simply showing their selffishness which is not wrong..
Posted by:
ravi taneja
11
I think it is disgusting to showcase such behaviour at this level. If this is
trhe attitude portrayed by CEO's of huge MNC, then their employees would show
the same to them when the time is right. I think the person who did this should
be fired and the company who was going to hire this person after he signed on
the dotted line and accepted the new offer should file a law suit againt thie
person as a lesson for all high-flyers
trhe attitude portrayed by CEO's of huge MNC, then their employees would show
the same to them when the time is right. I think the person who did this should
be fired and the company who was going to hire this person after he signed on
the dotted line and accepted the new offer should file a law suit againt thie
person as a lesson for all high-flyers
Posted by:
Vinni
12
I hav no problem with the executives trying to get the best deal for themselves.
Bit, it is a huge isue and concern when it is done with this low level of
integrity. Can you trust this type of executive for anything ? if he / she can
not have the courtesy or guts to have a "open dialogue" at the time of hiring,
how "direct" is he going to be with his employees, customers or vendors? I would
hope that industry can figure out a way to black list such executives or even
more importantly coach these executives to value "integrity" as high as the pay
check.
Arjun
Bit, it is a huge isue and concern when it is done with this low level of
integrity. Can you trust this type of executive for anything ? if he / she can
not have the courtesy or guts to have a "open dialogue" at the time of hiring,
how "direct" is he going to be with his employees, customers or vendors? I would
hope that industry can figure out a way to black list such executives or even
more importantly coach these executives to value "integrity" as high as the pay
check.
Arjun
Posted by:
Arjun
13
Everywhere the same. It has to be so. It is part of our economical and financial
system. they dont
want more money INSPITE of, but BECAUSE of. BECAUSE they fire people, the
company gains
more profit. And profit is - in the short sight view of greedy managers - the
only thing that counts.
the wake up will come soon. But until then: THEY earn the great money because
they do what is
expected from them.
system. they dont
want more money INSPITE of, but BECAUSE of. BECAUSE they fire people, the
company gains
more profit. And profit is - in the short sight view of greedy managers - the
only thing that counts.
the wake up will come soon. But until then: THEY earn the great money because
they do what is
expected from them.
Posted by:
suresh heilmann
14
Something is giving away from the prevalent value system in India. Professional
integrity is fast disappearing. We have been seeing this experience from the
younger employees for many years now. This is very disturbing.
integrity is fast disappearing. We have been seeing this experience from the
younger employees for many years now. This is very disturbing.
Posted by:
PK
15
This is quite unusual and unexpected at C-level roles. It is a serious business.
The C-level candidates are like celebrities. if they are are so in-decisive and
non-committed, than they may not be the best fit for those roles. They should
get out of market for such roles, and should convey we cannot handle it. This
situation puts companies at stake. This kind of behavior could only work, if
there is a conflict between employer and C-level candidate, which is unknown to
the media. But in general C-level hiring is a public news for any size of
company, so both parties need to be vocal and upfront about it.
The C-level candidates are like celebrities. if they are are so in-decisive and
non-committed, than they may not be the best fit for those roles. They should
get out of market for such roles, and should convey we cannot handle it. This
situation puts companies at stake. This kind of behavior could only work, if
there is a conflict between employer and C-level candidate, which is unknown to
the media. But in general C-level hiring is a public news for any size of
company, so both parties need to be vocal and upfront about it.
Posted by:
Deven A California
16
This is quite unusual and unexpected at C-level roles. It is a serious business.
If the C-level candidates are like celebrities. if they are are so in-decisive
and non-committment, than they may not be the best fit for those roles. They
should get out of market for such roles, and should convey we cannot handle it.
This situation companies at stake. This kind of pattern could only work, if
there is a conflict between employer and C-level candidate, which is unknown to
the media. But in general C-level hiing is a public news, so both parties need
to be vocal and upfront about it.
If the C-level candidates are like celebrities. if they are are so in-decisive
and non-committment, than they may not be the best fit for those roles. They
should get out of market for such roles, and should convey we cannot handle it.
This situation companies at stake. This kind of pattern could only work, if
there is a conflict between employer and C-level candidate, which is unknown to
the media. But in general C-level hiing is a public news, so both parties need
to be vocal and upfront about it.
Posted by:
Deven A California
17
To work with a team of experience professionals, is the motto of every one but
not at the cost of principles of an organisation.Negociation may come inbetween
if one has not been commited towards the goals any organisation & the most best
thing that can be done, is to increase the responsibilities of those who are in
the same from so long. So that they can go for a long run, ofcourse.
not at the cost of principles of an organisation.Negociation may come inbetween
if one has not been commited towards the goals any organisation & the most best
thing that can be done, is to increase the responsibilities of those who are in
the same from so long. So that they can go for a long run, ofcourse.
Posted by:
Sumit
18
It is a good sign that we are proving to be growing to an independent economy.
Posted by:
Kal Raj Misra
19
why many companies increase the ctc for a deserving candidate(or not so
deserving) even ignoring equally deserving people only when the first one show
the offer letter from another organisation? is that ethical?
deserving) even ignoring equally deserving people only when the first one show
the offer letter from another organisation? is that ethical?
Posted by:
tushar
20
Very simple solution exists, only the search firms have to sit and chek certain
facts, there should be an Ombudsmen, who decides the candidate's fate and also
ensures the search firms are not left in the lurch. the ERA this association
should ensure candidates who have given commitment to search firm and her
client, should be black listed by all search firms. That will esnure the
candidates for TOP Position think twice before making any loose commitmments.
facts, there should be an Ombudsmen, who decides the candidate's fate and also
ensures the search firms are not left in the lurch. the ERA this association
should ensure candidates who have given commitment to search firm and her
client, should be black listed by all search firms. That will esnure the
candidates for TOP Position think twice before making any loose commitmments.
Posted by:
venkatesan
21
In our company we have some of the executives in top positions from our
competitors which have gone bust (which are making losses continuously). Their
performance seems to be pathetic but even then they have been given top
positions & enjoy all the benefits due to them in the new company (due to the
subordinates sincere efforts to bring up the company even though they do not
enjoy those benefits).
I think a thorough overhaul of the system is necessary especially in large
establishments where job recognition is not given its due place.
competitors which have gone bust (which are making losses continuously). Their
performance seems to be pathetic but even then they have been given top
positions & enjoy all the benefits due to them in the new company (due to the
subordinates sincere efforts to bring up the company even though they do not
enjoy those benefits).
I think a thorough overhaul of the system is necessary especially in large
establishments where job recognition is not given its due place.
Posted by:
Sheshadri
22
I would really feel ashamed to work with such kind of people. Also the companies
should have a proper growth & career ladder, where they can always try out the
first option of promoting someone from the existing department or other
departments, instead of hiring a complete stranger for such a responsible role.
should have a proper growth & career ladder, where they can always try out the
first option of promoting someone from the existing department or other
departments, instead of hiring a complete stranger for such a responsible role.
Posted by:
Divya
23
Well this has been there for a while, but has come to light just now. It all
stared off with the junior - mid level execs using these dirty cards, but had
crept up the corporate ladder too.
The so called 'most sought after execs' may not perform well in the new
assignment. Not because they are good or bad, the ambience, culture, business
model or the people may not support to their cause, which might have worked well
for him / her.
So having said that, there is no guarantee that the person who they hire is
going to meet or beat their expectations. So why not look at the other execs in
the marketplace (iam sure there is still good quality of talent available) and
look for other softer aspects and personalities which might boost up the
company's growth to next level and have the options open!
stared off with the junior - mid level execs using these dirty cards, but had
crept up the corporate ladder too.
The so called 'most sought after execs' may not perform well in the new
assignment. Not because they are good or bad, the ambience, culture, business
model or the people may not support to their cause, which might have worked well
for him / her.
So having said that, there is no guarantee that the person who they hire is
going to meet or beat their expectations. So why not look at the other execs in
the marketplace (iam sure there is still good quality of talent available) and
look for other softer aspects and personalities which might boost up the
company's growth to next level and have the options open!
Posted by:
Shyam
24
This is one of the reasons why one should not go out of the way looking for
"Most sought after executives"...we should learn to find and pick the available
talent and groom them to become top executives. This way you will have their
committment and integrity for the organisation.
"Most sought after executives"...we should learn to find and pick the available
talent and groom them to become top executives. This way you will have their
committment and integrity for the organisation.
Posted by:
Kalpesh Dolia
25
It is really dirty play by people who are supposed to be the most responsible
ones.
ones.
Posted by:
Harsha
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