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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.
Posted by: Kuunal - 12:00 AM Aug 05, ' 08
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 :)
Posted by: Karandeep Malik - 12:00 AM Jul 31, ' 08
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.
Posted by: Karandeep Malik - 12:00 AM Jul 31, ' 08
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.
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 - 12:00 AM Jul 31, ' 08
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 - 12:00 AM Jul 29, ' 08
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.
Posted by: nagraj panchawati - 12:00 AM Jul 28, ' 08
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
TIT for TAT
Posted by: Sriram - 12:00 AM Jul 28, ' 08
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.
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 - 12:00 AM Jul 28, ' 08
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..
Posted by: ravi taneja - 12:00 AM Jul 28, ' 08
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
Posted by: Vinni - 12:00 AM Jul 28, ' 08
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
Arjun
Posted by: Arjun - 12:00 AM Jul 28, ' 08
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.
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 - 12:00 AM Jul 28, ' 08
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.
Posted by: PK - 12:00 AM Jul 28, ' 08
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.
Posted by: Deven A California - 12:00 AM Jul 28, ' 08
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.
Posted by: Deven A California - 12:00 AM Jul 28, ' 08
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.
Posted by: Sumit - 12:00 AM Jul 28, ' 08
18: It is a good sign that we are proving to be
growing to an independent economy.
Posted by: Kal Raj Misra - 12:00 AM Jul 28, ' 08
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?
Posted by: tushar - 12:00 AM Jul 28, ' 08
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.
Posted by: venkatesan - 12:00 AM Jul 28, ' 08
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.
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 - 12:00 AM Jul 28, ' 08
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.
Posted by: Divya - 12:00 AM Jul 28, ' 08
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!
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 - 12:00 AM Jul 27, ' 08
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.
Posted by: Kalpesh Dolia - 12:00 AM Jul 27, ' 08
25: It is really dirty play by people who are
supposed to be the most responsible ones.
Posted by: Harsha - 12:00 AM Jul 27, ' 08
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