10-20% of CEOs fail trust vote (Indian CEOs)

[OhioChick]

28 Jul 2008, 0119 hrs IST, Shalini Singh,TNN

NEW DELHI: India Inc is not quite as fortunate as the government, with a disturbing 10% to 20% or more of its top leadership losing the trust vote for reneging on contracts and commitments.

According to the top global executive search firms in the country, a growing number of India's best paid and most sought after executives are revealing a dark, opportunistic and irresponsible side, accepting plum offers in the CEO, CXO series and then failing to show up at work on the joining date because they have used the first offer to negotiate a better deal, either with their present employer or in another company.

The number of such betrayals, which comes at a huge cost to all stakeholders, is staggering. What's worse, the rate of default appears to be directly proportional to the rate at which firms transform from national players to transnational or global organizations.

According to estimates, India's top seven executive search firms collectively handle roughly 705 senior search mandates annually, of which 60% or 423 are for CXOs. Of these, 10% to 20% or as many as 85 walk away from the commitment at the very last minute. Shockingly, often without prior intimation.

"The numbers will be even larger if we include data from smaller executive search firms," Uday Chawla, managing partner, Transearch India, told TOI .

"This last minute betrayal is not directed just at Indian firms, but MNCs as well. The confidentiality of the search process and the huge demand for leaders is making candidates reckless about spoiling their relationships within the industry," says Sanjiv Sachar, partner, Egon Zehnder International.

More: http://timesofindia.indiatimes.com/Business/Greedy_Indian_CEOs_losing_trust/articleshow/3292318.cms

[Tandalayo_Scheisskopf]

1. This lack of ethics...

Has other ramifications that will become apparent to us over time. Short time, too.

[burythehatchet]

2. How so? Is your implication that Indian CEO's are more unethical than non-Indian?

[OhioChick]

3. I think that

Indian CEO's are taking their cue from U.S. CEO's.

[Tandalayo_Scheisskopf]

4. No.

But when you have a lack of ethics that is obviously growing and becoming deeply rooted with time, and you consider some of the sensitive information they administrate, but don't "own", it is not too hard to extrapolate the potential problems on the horizon.

[OhioChick]

5. Good Valid Points. n/t