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Business Today

Business Today 19-May-19

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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.

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26 Issues

in this issue

3 min.
the ceo pay conundrum

The great executive pay debate started many decades ago and it has become more heated over the years. One reason is that despite all the discussions and noise, the gap between the CEO’s (and other top management) compensation and that of the average worker has only widened over time. The late management guru Peter Drucker, in his writings and speeches – in the 1970s and 1980s – had advocated no more than a 25:1 or 20:1 ratio between the top executive’s compensation package and what the average worker drew. Today’s remuneration committee members would probably laugh at Drucker’s naivety. A 2017 Economic Policy Institute report suggested that the average compensation of the US CEO was 271 times that of the annual average wage earned by a typical worker. Averages hide a…

1 min.

STAY CONNECTED WITH US ON www.facebook.com/BusinessToday@BT_India PERSPECTIVES Maruti’s Decision to Phase Out Diesel by April 2020 May Hasten the End of the Road for the Fuel The company, however, will remain open to rethink if there are enough takers for that variant even after the prices go up after the BS-VI roll-out businesstoday.in/maruti-diesel How the Business of Chowkidars Is Changing Exponential technologies such as drones and IoT are expected to change how companies protect their assets and people businesstoday.in/corporates-chowkidars Why Ayushman Bharat May Stay Irrespective of Election Outcome Ayushman Bharat, which covers hospitalisation and diagnostic expenses of every major illness, has both public and private health-care providers within its ambit businesstoday.in/ayushmanbharat-benefits NEWS IBC Delivering Results; A Reform Modi, Jaitley Should Be Proud of Despite its flaws and constraints, the insolvency law has given the desired results in the short run and looks promising…

1 min.
tough times ahead

NOW THAT THE US has refused to extend the waiver on oil imports from Iran, Indian oil companies have been asked to reduce oil imports from Iran to zero by May 1. India has worked out supplies from Saudi Arabia, Kuwait, the UAE and Mexico to bridge the gap. However, that is not the end of the problem. Brent crude has already touched $75 a barrel. It hit $84 a barrel when the US first announced pulling out of the nuclear deal with Iran. In November, prices dipped to $50 a barrel on the Trump regime’s decision to grant waiver to eight countries, including India. The scenario may lead to a rise in international prices of petrol and diesel. Since April 21, oil companies have stopped correcting prices. There is another challenge: Iranian…

1 min.
slow on development

UNDER THE Members of Parliament Local Area Development (MPLAD) Scheme, each MP can suggest to the District Collector works to the tune of ₹5 crore per annum to be taken up in his constituency. Most projects are in priority sectors. One big hurdle, though, has been the increasing size of pending fund installments. In the 14th Lok Sabha, the unspent balance with district authorities was ₹173.4 crore. It grew to ₹552.86 crore in the 15th Lok Sabha. In the just ended 16th Lok Sabha, it touched ₹1,641.21 crore, close to 15 per cent of the total sanctioned amount of ₹11, 232.50 crore. The political and social cost of such delays can be immense, especially during election time.…

1 min.
mediation for faster resolution

THE INABILITY of the Insolvency and Bankruptcy Code (IBC) to dispose of a majority of the cases within the stipulated time is bothering the government and the regulator. While cases are to be resolved within 270 days, some have been dragging on for over one-and-a-half years without closure. As of December 2018, out of around 900 ongoing cases, 275 had crossed the 270-day time limit. Concerned with the delay, the government and the regulators have been thinking of new ways to address the issue. One is to have pre-pack resolution plans. The government is apparently planning to allow a mediation mechanism to reduce the time taken to resolve disputes. A mediator, as is the practice in some countries, might help expedite the process as the adjudicators – National Company Law…

1 min.
limited gains for equity investors

A COMBINATION of moderation in interest rates in the US in the last one year and lower oil prices had lifted the sentiments on Indian equity markets, creating the basis for the current rally. This tailwind is likely to come to an end as 10-year bond yields in the US are up nearly 20 basis points from their lows in March. Higher bond yields reduce attractiveness of Indian equity and could dampen incremental inflow of foreign portfolio investments. This could put a ceiling on rise of benchmark indices. Also, an increase in oil prices will result in higher current account deficit (CAD) for India, besides increased input costs and lower margins for companies. Higher CAD means the rupee could once again come under pressure, much to the dislike of foreign investors.…