[Samurai]

Originally Posted by SmartCat

That is not correct. Once a company goes public, there is no difference between professional/founder CEO.

I am talking about sentiment and influence here. Stakeholders will be lot kinder towards founder CEOs vs Professional CEOs, because of founders built the company in the first place. Also look at the age of the company. If it was created many decades ago, then the promoter/founder doesn't matter. If the original promoter isn't still actively growing company as a CEO, why should it matter? Does Bill Gates matter to Microsoft anymore? Do Tatas matter to any Tata company? Does Mahindra family matter to Mahindra? But Ambani/Adanis matter because they built the company. Their kids won't matter.

Originally Posted by SmartCat

But yes, all this is not applicable to Zerodha's case, only because it is a private company with no other shareholders (as mentioned in my post).

Yet you brought it up here...

Originally Posted by SmartCat

From now onwards, more and more owners will try to pull out funds from their company in the form of salaries, rather than dividends. That's because dividends are now taxed at the hands of the promoters, and it is no longer tax efficient.

This is an India only rule, isn't it? This will actually result in more companies moving out of the country, I mean those who can. In fact, when I started a new company last year, many advised me to start in either Singapore, Dubai or USA. But the logistics didn't make sense, and we stuck to India.

[SmartCat]

Zerodha's founder has given a statement on this matter - the current tax structure we have here in India pushes startup founders to sell/dilute stakes in their companies.

“Taking salaries is a very inefficient kind of remuneration structure for promoters, as there are huge tax liabilities – to the tune of 50%. In comparison, when a promoter encashes his/her stake, the tax outgo is much less. Unlike other startups, we have not diluted our stakes for a valuation premium. We have no intention to sell our stakes and the only way to encash our success and get some liquidity is by increasing our salaries.”
https://economictimes.indiatimes.com...w/83038312.cms

Looks like Kamath brothers have plans to diversify into new non-finance related new businesses - hence the need for large liquidity. If it was finance related, they always invest under Zerodha

[SmartCat]

Eicher’s Siddhartha Lal loses MD post over plan to increase his salary by 10%
Sources told ET that they were basically against a proposal to increase his salary by 10% as it outpaced the company’s revenue and profit growth last year amid the Covid-19 pandemic.
https://auto.economictimes.indiatime...by-10/85477459

[Samurai]

I am not sure whether this is a parody website, but the article is very interesting.

Should we automate the CEO?
There has been a lot of buzz about how AI might eventually replace lower-rank workers. But why not start with the highest-paid corporate executives?

https://thehustle.co/should-we-autom...z5-9FRUQbkezYw

[deehunk]

Originally Posted by Samurai

I am not sure whether this is a parody website, but the article is very interesting.



https://thehustle.co/should-we-autom...z5-9FRUQbkezYw

We Indians are used to automated leadership in politics since Independence, so quite possible in workplace too!