Narayana Murthy re-enters, but slips right away

It is not all that unusual for a company to requisition the services of a former CEO or Chairman. Quite a few CEOs have staged a comeback in the same position. Dell, Apple, Coca Cola and recently P & G are notable examples. However, it does not reflect well on the ability of these companies to groom leaders.

NRN's reentry as Executive Chairman of Infosys has been widely welcomed and perhaps rightly so. Yet, creation of an aura of indispensability around anyone is not desirable.

Further NRN has made a few maladroit moves. He has over-emotionalised the development which is not the hallmark of a great leader. Unable to justify his departure from his proclaimed endeavour to keep family members away from leadership roles at Infosys, he has sought to rationalise his son's entry as his Executive Assistant saying, "This was an emotional decision for him as my entire family has an enormous emotional connect with the company". Emotionalising nepotism does not make it any different. It is a pity that two great exemplars of corporate governance, NRN and Azim Premji have both thought it fit to drag their progeny into the public limited companies chaired by them. This is ofcourse not to question the credentials of their highly qualified, and perhaps unwilling, children.

K.V.Kamath will be the lead independent director. It is anomalous that a person whose leadership of the company failed to produce positive results will be vested with the responsibilty of having to 'objectively and independently' assess the company's performance. Some ironies remain widely unnoticed.

Rahul Gandhi's shibboleth

Rahul Gandhi who will be our next prime minister, if we are 'lucky', has expounded a new theory. "If I get married and if I get children, I will only be a status-quoist. I will only try to make my children take my position. Therefore, I will not get married." He is clairvoyant enough to foresee that his children will be the next generation of congress netas.

With just a few sentences, Rahulji has demolished the institution of marriage. He says he does not want to give up the task of reforming the party and hence no marriage for him. Have you ever come across a married person who is also a reformer? Atleast our leader has not.

Sadly, he does not want to be prime minister also. He has started talking about 'nishkama karma' and Bagavad Gita also. The essence of the Gita is that one need not renounce family in order to be of service to society. A leader should set up a good example because a lot of people will follow what he does. There should be consistency among what one thinks, says and does. Vagabondism and hypocritical altruism are not desirable qualities.

Importance of Experience

IiAS (Institutional Investor Advisory Services) has advised institutional investors to vote against the special resolution to elect Sudarshan Venu, son of Venu Srinivasan to the Board of TVS Motor Company Ltd. The reason advanced is his lack of experience though it is accepted that he is educationally well qualified. IiAS has done a commendable job in highlighting one's need for experience to qualify as a director.

The company should accept the spirit behind the recommendation of IiAS and withdraw the resolution. It is a test for the company's commitment to principles of corporate governance which necessarily include the grace not to nominate the promoter family member ipso facto to the Board.

Experience is even more necessary to run a nation as its prime minister. Being a member of a particular family does not automatically entitle anyone to become a country's leader. It is strange that standards required to become a company's director are stricter than those for becoming a country's leader.