A Leader Needs To Instil Trust - N R Naryanmurthy - Co Founder, Infosys - TOI 19.08.2007
They got it WRITE
NR NARAYANA MURTHY | CO-FOUNDER, INFOSYS
A leader has to have followers to be a leader. That is why I stood by my controversial decision on CEO’s salaries being linked to company’s earnings. If you want to enhance the trust of employees in the leader, then the leadership of the company has to conduct itself in a manner that enhances trust. Also, the CEO or the leader must definitely reap benefits proportionate to the benefits derived by the company.
Never before in the history of the business community in the world did we have a situation where trust of man and woman in the street is lowest in business leaders. According to a US survey, corporate leaders are least trusted, as many of them violated codes of ethics and even laws.
On the Indian side, if you have analysed how salaries of CEOs have increased in 15 years, they have gone up from Rs 7,000 and Rs 10,000 to Rs 70 lakh (Rs 7 million) on an average. I am one of those who fought for this. When on board of a company, I saw to it that the CEO had a variable linked to output.
Indeed, salaries of the lowest paid persons have not correspondingly gone up. I won't get into a debate whether this is right or wrong.
Never before in the history of the business community in the world did we have a situation where trust of man and woman in the street is lowest in business leaders. According to a US survey, corporate leaders are least trusted, as many of them violated codes of ethics and even laws.
On the Indian side, if you have analysed how salaries of CEOs have increased in 15 years, they have gone up from Rs 7,000 and Rs 10,000 to Rs 70 lakh (Rs 7 million) on an average. I am one of those who fought for this. When on board of a company, I saw to it that the CEO had a variable linked to output.
Indeed, salaries of the lowest paid persons have not correspondingly gone up. I won't get into a debate whether this is right or wrong.
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