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COVER
STORY
Executive
Pay Differences : A Narrative Inquiry Reflecting Cross-Industry
Perspectives for the Global Effective Executives
-- Dr. Paul B Carr, Gail Longbotham
There
has been a bevy of speculation recently regarding executive
salaries and compensation in general for corporate officers.
One aspect of this scenario that has received a great
deal of attention is related to executive pay differences
associated with various types of organizations be it
privately owned or public, and issues such as exorbitant
executive compensation packages. It appears as though
these executive pay issues are often at the forefront
of the news when executives are involved in some type
of litigation that result in compensation related issues;
or simply a news flash about exorbitant executive compensation.
A realistic perspective related to executive compensation
was the premise of this qualitative research endeavor-more
specifically a cross-industry inquiry related to executive
pay. A narrative research endeavor was conducted in
order to ascertain the perspectives of executive pay
from a cross-industry posture. The research endeavor
consisted of accessing the opinions of 20 individuals
utilizing an item pool that may ascertain the perspectives
of the respondents.
© 2007 IUP . All Rights Reserved
COVER
STORY
The
Endogenous Relationship of Executive Stock Options and
Firm Value : Self-Interested Manager's Model
-- Tom Nohel, Steven Todd
We study the effect of managerial behavior on the
value and incentive effects of executive stock options.
Such a study hinges critically on using a model wherein
managerial behavior and firm value are endogenous, precluding
the use of the Black-Scholes model. In our model, a
self-interested manager makes an investment decision
based on private information about investment opportunities.
We show that when a call option's value is $11.32 under
an optimal investment policy, its value varies from
$0 to $13.73, depending on the manager's risk aversion
and wealth composition. We also show that the manager's
delta is a poor proxy for incentives to invest or agency
costs, and hence firm value. Managers of identical firms
with nearly identical deltas may pursue vastly different
investment strategies, due to differences in wealth
composition and risk aversion.
© 2007 IUP . All Rights Reserved
COVER
STORY
Women
and the Executive Pay Gap : There but not yet there
-- Suraj Prasad
There is a tendency to use specific terms for explaining
the gender gap like "motherhood penalty" or "opt-out
phenomenon". This article highlights that women need
to be helped in balancing both personal and professional
lives.
Copyright © 2007 by Suraj Prasad. All rights reserved.
HRM
Managing
the Performance of Individuals : The Key Drivers
-- DONALD E SEXTON
There
are seven major factors that drive employee behavior.
Managers must manage each of these factors and establish
a motivating environment that leads to superior performance
by their people.
Copyright © 2007 by Donald E Sexton. All rights reserved.
HRM
Soft
Skills Rx : A prescription for Effective Executives
-- Vineet Tandon
While corporates are waking up to the importance
of soft skills, a lot still needs to be done. Many companies
still give more emphasis to knowledge skills and the
importance given to soft skills depends upon how much
management support is offered to them. Soft Skills have
suddenly be come a hot topic for discus sion. Be it
management colleges or cor porates, suddenly everyone
is waking up to the importance of soft skills. But,
why? Because, it is difficult to survive in this competitive
world without them. As we usher into the knowledge economy
with more and more people equipped with traditional
degrees and certificates, it is becoming an absolutely
important and critical tool that differentiates raw
talent from skilled talent.
© 2007 IUP . All Rights Reserved
HRM
The
Duo-Dimensional Hypotheses of Stress : Analyzing Stress
in a Vedic Perspective
-- Dr. Sreedhar P. Nair, Dr. Tharsis Joseph
A
distress is like a "gooseberry", which tastes bitter
at the begining and becomes sweet later. Every person
flourishes through stages of crisis and distress in
his life. Adversities have been the stepping-stones
in the lives of many dynamic personalities in the world.
But while analyzing distress, usually emphasis is on
its dysfunctional aspect only. The func-tionalities
or constructive aspect of a distress also need to be
studied and highlighted.
© 2007 IUP . All Rights Reserved
HRM
Human
Asset : Leverage on it
-- Dr. Juin Choudhury
Companies can retain their talented people by using
knowledge management so that they are given an opportunity
to transfer and share their knowledge. They can enhance
employee retention rates by recognizing the value of
employee knowledge and rewarding them for it. Most of
the organizations think that their employees or hu-
man resources constitute the most valuable element in
their asset portfolio. People are not organizational
asset: they cannot be owned or controlled. However,
people are the owners of human capital-talent, skills,
knowledge and enthusiasm-some of which are invested
in their work.
© 2007 IUP . All Rights Reserved
TELECOM
MARKETING
Marketing
in Indian Cellular Services : Story of Innovations,
Retaliations and use of Technology
-- Shirshendu Ganguli
When we look at the evolution of cellular telephony
services in India, it has been a story of rapid growth
in a comparatively brief period, making it one of the
fastest growing markets of cellular services. But the
marketing people, faced with severe problems of churn
and low Average Revenue per User (ARPU), have to invent
and find new ways of revenues all the time. In cellular
services, retaliation from competitors is very fast
and first mover advantage is almost zero. Also, cellular
service providers are now looking at the efficient uses
of technology in order to gain more profitable customers
and thus aim at long-term sustainable growth.
© 2007 IUP . All Rights Reserved
SALES
FORCE MANAGEMENT
Sales
Executives on the Run : What Organizations can do to
Reduce Attrition Levels of Sales Executives
-- ANIL KUMAR VK
Many organizations suffer their highest staff turnover
and attrition in sales. The reality is that, as organizations
seek to establish long-term profitable relationships
with key customers, they also need to establish a stable,
highly competent and empowered sales force to help meet
these objectives. Whatever good a product is, will not
be successful in the market, if not marketed properly.
In the present scenario of globalization, which has
made the world very small, everybody has to meet global
competition. In spite of the avenues of advertisement
and sales promotion, the sales executives play a vital
role and is a vital weapon in the hands of the management
when it comes to improving the sales and the brand image.
© 2007 IUP . All Rights Reserved
RETAIL
SECTOR
Indian
Retail : The FDI Dilemma
-- K Suresh
Retail
remains one of the sectors where the government agenda
to liber alize seems to be on a temporary hold. Given
the intense lobbying from domestic retail chains and
the likely political fallout of further opening up the
sector for FDI, the issue triggers strong emotions across
the retail value chain. Traditionally, Indian retailing
has been dominated by the unorganized sector. During
the past decade, organized retail chains with national
presence have emerged. Simultaneously, there has been
proliferation of retail formats. The past five years
saw malls, hypermarkets and departmental stores springing
up in many cities and towns across the country.
© 2007 IUP . All Rights Reserved
STRATEGY
Collaboration
: The Inevitable Requirement for Survival
-- Madhuri Modekurti
We
are living in a world where we find that no organization
is an island. Globalization and growth of Information
and Communication technologies have positioned our lives
and the organizations in a maze of connections. These
networks are creating a necessity for collaboration
in enabling organizations to gain on a number of fronts
like resources, skills, customers and markets. Hence,
collaborations are increasingly becoming popular and
need to be adopted and fostered for an increased sustained
growth.
© 2007 IUP . All Rights Reserved
LEADERSHIP
The
Content of Character : The Most Important Leadership
Trait
-- Satheesh Kumar TN
Leaders resort to or indulge in acts of short-termism
and lack of credibility without realizing that employees,
customers, suppliers etc., would feel proud to be working
for, buying from or associating with organizations led
by people of character and credibility. The term "content
of character" became famous after Rev Dr. Martin Luther
King Jr. used it in his famous "I have a dream" speech
delivered at Lincoln Memorial in Washington DC before
a crowd of 250,000 people on August 28, 1963. While
Dr. King used it in the context of racial discrimination
in US, the term is very much applicable and relevant
in the context of leadership today.
© 2007 IUP . All Rights Reserved
LEADERSHIP
Becoming
a Leader : It's Just a Matter of Role-Play!
-- GRK Murty
Shakespeare, the "Sweet Swan of Avon" displayed
through Portia - the fairer than fair heroine of The Merchant
of Venice - how a chosen role can be played better with
sympathetic imagination iced with love, courage and
self-confidence. James Kelly and Scott Nadler are of
the opinion that senior managers- the so-called CEOs,
COOs, CFOs- are "hamstrung by the demand for immediate
results" and hence "any change in the way companies
operate often depends on leadership from below." According
to their study on the process of leading from below
in hundreds of companies around the world that spread
over a period of seven years, most of the managers are
found to be performing either service or governance
roles.
© 2007 IUP . All Rights Reserved
CASE
STUDY
CEO
Compensation and Corporate : Governance at NYSE
-- G Srikanth and Kausiki
Excessive
CEO compensation has sparked off discussion in the academic
and the corporate circles. Dick Grasso, the former Chairman
and CEO of the New York Stock Exchange (NYSE), was forced
to step down in September 2003 much before his scheduled
retirement in 2007, when he was accused of receiving
an excessive pay package. His case reinforced the need
for reforming the governance practices at NYSE in particular
and the corporate world in general. Through the instance
of Grasso, this case raises the issues of separation
of the office of Chairman and CEO, and the independent
functioning of the boards.
© 2004 IBS Case Development Centre.
All Rights Reserved.
INTERVIEW
The
essence of our work, however, lies in the freedom and
choice to a better life that many of our clients make.
-- Vandana & Vaishnavi The interview was conducted by
Dr. Nagendra V Chowdary
The Banyan began fourteen years back as a humanistic
response to restore hope and dignity to homeless women
with mental illness. Abused and stripped of their identities,
their existence is often obscured and invisible to a
larger part of society. Our journey has been an endeavor
to ensure these women the right to rescue, the right
to care and the right to a life of freedom and dignity
in society.
© 2007 IUP . All Rights Reserved
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