Business & Finance
Business Today

Business Today 15-Jul-2018

A leading business magazine read by the business leaders for staying ahead and managing challenges that comes right away in the ever changing world of business.

Living Media India Limited
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26 Issues

in this issue

3 min.
the corner room pay

CEO COMPENSATION debates in India and abroad are always contentious and have grown more contentious over the past couple of decades as better reporting norms of executive pay have come into effect, as have newer ways of compensating CEOs. The general feeling among lesser mortals is that CEOs are vastly overpaid. There is some basis to that feeling – CEO salaries have gone up even in bad years for the economy and have gone up much faster than average compensation. According to a Bloomberg study, listed Indian company CEOs earn 229 times more than the average worker in their company. (The gap is even higher between the CEO salary and salary of the entry-level executive.) Similarly, another study shows that in the past few years, the wage bill of the…

1 min.

PERSPECTIVES Why an Escalating Trade War with US Will Further Weaken the Currency Value Against $ The rupee has been depreciating for quite some time now because of trade deficit and higher current account deficit businesstoday.in/US.tradewar-rupee Airtel Row: Emotional Intelligence over Artificial Intelligence The customer care teams need to be sensitised about the issues that can cause irreparable damage to the brand businesstoday.in/airtel-customer Is the Patanjali Phenomenon Fading Out? Industry experts point out that Patanjali has to be more focussed. Instead of carpet bombing the market by entering into every possible category, the advice is to select high-growth and highmargin segments and focus on them businesstoday.in/patanjali-growth How Decline in New Product Launches Is Impacting Indian Pharma Industry Domestic market sales of new product launches now is about 2-2.5 per cent compared to about 3-4 per cent three-four years ago businesstoday.in/pharma-newproducts NEWS Maharashtra to Set…

1 min.
the icici succession

AFTER CHANDA KOCHHAR, what now? With its Chief Executive Officer on leave pending allegations of conflict of interest, ICICI has brought in its senior-most executive Sandeep Bakhshi as Chief Operating Officer. The move works both ways. Should Kochhar be cleared and return, Bakhshi will remain COO – a confidence building exercise for the bank’s unhappy institutional investors. On the other hand, if Kochhar doesn’t return, Bakhshi could be a comforting choice for CEO. Insiders say the bank’s board is already debating bringing in more independent directors. For the interim, the entire management will report to Bakhshi who reports to the board. An old ICICI hand, what goes against Bakhshi, is his reputation of being conservative. In 2002, he was asked to build up ICICI’s general insurance business and then returned as Deputy…

1 min.
the rupee toll

7% Rupee depreciation from 63 levels in January this year to 68 levels. THE LIST OF NEGATIVES for rupee value against the US dollar is increasing by the day. it all started with higher crude oil prices and now there are talks of an imminent trade war with the US where india enjoys a trade surplus. Where is the Rupee headed? in just six months it depreciated by over 7 per cent from ₹63 levels in January this year to ₹68 levels. This sharp depreciation places the indian Rupee among the worst performers in emerging markets. With yields up in the US market, the resultant outflow of US dollars from emerging markets including india, compounded by weak domestic macros, india faces a perpetual trade deficit. a trade war with the US will weaken…

1 min.
sunshine at halol

OFFICIALS AT SUN Pharmaceutical Industries heaved a sigh of relief in mid-June after the United States Food and Drug Administration (FDA) pronounced that the firm’s plant in Halol, Gujarat was cleared. The ‘Voluntary Action Indicated’ (VAI) tag effectively means no major problems were detected by US FDA inspectors in an inspection this February. For Sun Pharma this means it can start manufacturing from Halol again. This is crucial because the Halol plant accounted for almost 15 per cent of Sun’s overall revenues and over 20 per cent of its US earnings when it failed the FDA’s standards in 2015 and then again in 2016. This time round, the VAI tag came because of rectifiable flaws – cracked, uneven surfaces that were difficult to clean, dirty gaskets, and poorly written machine procedure…

1 min.
bond trouble

IN THE FACE of widespread criticism over its decision to tax petroleum products heavily, interim finance minister, Piyush Goyal blamed the UPA and its mismanagement of finances. Under UPA 2 petro products were heavily subsidised. And, when funds proved quite inadequate the exchequer issued oil bonds (that had long-term maturity commitments). Goyal says the NDA inherited ₹1, 30,000 crore worth of oil bonds that will start maturing in the next four years. The NDA regime, he said, had already paid ₹40,226 crore as interest on these bonds. What the minister refrains from discussing, however, is how the NDA missed its chance to recoup losses. When crude oil prices were subdued, the NDA regime managed to clean up the books of oil companies, but didn’t do anything about the oil bonds. Had it done…