by R. Suresh
CEO, Stanton Chase International, India office
Changing jobs at the senior level can, at times, be a long-drawn and messy affair in India Inc. Delicate employee-corporate courtships on which corporate fortunes hinge so much in India are facilitated in the main by head-hunting and employee search firms. In the first of this series, BT presents a head-hunter's perspective on issues that need to be kept in mind while making career moves at the top. Stanton Chase's Chief Executive Officer R. Suresh presents his views on compensation negotiation for prospective ceos.
Every 'C' level appointment (head-hunterspeak for CEO, CFO and COOs) starts off with both sides-the hiring company and prospective candidate-stating their past track-record and the roles they want to play in the future. Then comes the issue of compensation. Compensation has always been a sticky issue in Corporate India, requiring careful resolution. This is illustrated by the following account of an awkward case that our executive search firm recently had to handle.
A retail food multinational client of our firm needed a director for its sales and marketing division. We researched, shortlisted and presented two finalists, ranked first and second.
The first candidate was someone we had known for years and whose capabilities were proven, while the second finalist was a new find. During the initial discussion, when we put forth the salary-band on offer, the first candidate (ranked No. 1) categorically stated that his role in the organisation and its future were more important than to him the salary (he refused to part with his current details). After several rounds of assessment, our client zeroed in on the first candidate and invited him to Mumbai for a discussion on the issue of compensation.
The candidate sensed he was being sought after and decided to play hard-ball. He demanded a business-class ticket for the trip and even called up the secretary of the client company's managing director to specify the type of car that should pick him up from the airport. In the ensuing negotiations, this candidate aggressively drew up his compensation stack, including sundry benefits such as cell phone, credit card, and a broadband internet connection. He added that a 50-60 per cent jump in salary was in order: he was factoring in a 'risk-premium' for shifting from a stable career; and there was an imminent salary hike in his current organisation that he would have to forgo. Though this far exceeded the initial estimate, our client yielded. Once this was settled, everything fell into place. The appointment note was issued the very next day.
After a week, our friend called back to say that while the overall annual compensation had been settled, there were still many unresolved issues about his terms of employment. We felt it was time we stepped in to address these issues along with the client and invited this candidate again to Mumbai. He now had a new list of demands that included benefits like a 'sign-on' bonus and 'severance pay'. We dropped him and hired the second choice instead.
Contact
R. Suresh
CEO, Stanton Chase International, India office
Office: 91-22-2830 2454
Fax: 91-22-2830 2830
r.suresh@stantonchase.com
