CEO Salary to Sensex

Average CEO salary at top Sensex firms near Rs 10-crore

The average CEO pay at India's top listed companies has risen to Rs 10 crore a year, but still remains less than one-tenth of over Rs 100 crore median remuneration paid to their peers in the US.

The top executives of the country's biggest bluechip companies, forming part of the stock market's 30-share benchmark index Sensex, were paid an average remuneration of Rs 9.9 crore in the latest fiscal 2013-14 -- up from about Rs 8.5 crore in the previous year.

In comparison, the average CEO pay for the companies forming part of the US stock market's 30-share benchmark index DJIA (Dow Jones Industrial Average) stood at USD 17.5 million (Rs 105 crore) during the last year.

The corresponding figures for the UK and Germany stood at about Rs 60 crore and Rs 50 crore, respectively, in 2013 -- which are also significantly higher than the Indian average.

The average CEO pay for the Sensex companies would come down even further if the figures for the six PSU companies are taken into account, as their annual packages are considerably lower as they follow government regulations for salaries.

The average figure of Rs 10.06 crore for the fiscal year 2013-14 has been derived through an analysis of the latest pay disclosures so far made by the private sector Sensex companies in their latest annual reports.

However, the figures does not include the value of stocks owned by these persons, as also the other accrued benefits such as dividend payouts that may arise from share ownerships.

There are 24 private sector companies in the 30-share index, but six of them are yet to make public their 2013-14 annual reports. These six companies are Larsen and Toubro, Cipla, Bharti Airtel, Maruti, Sun Pharma and Hindalco.

Among these 18 Sensex companies taken into account, only four showed a decline in their CEO compensation for the latest fiscal, while the annual pay remained unchanged in one case -- Reliance Industries' Mukesh Ambani -- at Rs 15 crore.

The pay package increased at TCS, Bajaj Auto, Axis Bank, ITC, Dr Reddy's, Hero Motocorp, HDFC, HDFC Bank, ICICI Bank, Tata Power, Wipro, M&M and Tata Motors.

Those recording a decline in their annual CEO pay package included HUL, where Sanjiv Mehta took over the leadership baton from Nitin Paranjpe during middle of the fiscal in October 2013. Others with lower CEO pay during 2013-14 were Sesa Sterlite, Tata Steel and Infosys, whose outgoing CEO S D Shibulal was among the lowest paid in Sensex-club at just about Rs 16 lakh (down from Rs 65 lakh in previous fiscal).

Among those with higher pay packages, Hero Motocorp's Managing Director and CEO Pawan Munjal got a total pay package of Rs 37.9 crore in 2013-14, up from Rs 32.8 crore in the previous fiscal. This included nearly Rs 3.5 crore as salary and Rs 29.8 crore as commission, among others.

In the US, technology major Oracle Corp's Larry Ellison was the top-paid among blue-chip American firms with a pay package of USD 78.4 million (over Rs 470 crore), while Houston-based Cheniere Energy's CEO Charif Souki topped the overall chart with remuneration of USD 142 million (over Rs 850 crore) in 2013.

Amazon Concurring India's Market Share

India set to become Amazon's fastest-growing market

Amazon.com on Wednesday said it will invest a further $2 billion in India just a day after the country's largest e-tailer Flipkart attracted $1 billion of fresh funds, raising the stakes in a nascent but fast-growing e-commerce sector.

Amazon, which opened its Indian website in June last year, has drawn up the battle lines by slashing prices, launching same-day delivery, adding new product categories and embarking on a high-voltage advertisement campaign.

Amazon and Flipkart are joined in India's $13 billion e-commerce sector by marketplace Snapdeal, fashion e-tailer Jabong, and US auctioneer eBay.

"With this additional investment of $2 billion, our team can continue to think big, innovate, and raise the bar for customers in India," chief executive Jeff Bezos said in a statement. "At current scale and growth rates, India is on track to be our fastest country ever to a billion dollars in gross sales."

Amazon had not previously disclosed Indian investment plans. But on Monday, the US company said it will raise its presence in the country by opening five more warehouses, almost doubling storage capacity to half a million square feet.

"It's all about who builds up scale faster and remains relevant for the next few decades," said Harminder Sahani, managing director of retail consultancy Wazir Advisors.

Amazon makes its money in India by charging third-party suppliers to use its website to sell 17 million different products including books, electronics and clothing.

The government is considering allowing foreign retailers to sell directly to customers. It recently took a step in that direction by allowing retailers to sell online products manufactured in India.

Indian e-commerce is expanding at a compound annual growth rate of 34%, according to a joint report by consultants Digital-Commerce, the Internet Mobile Association of India and the Indian Market Research Bureau. That rate, however, is slower than in some other emerging nations such as China.

Of the $13 billion market, travel services account for about 70%, according to consultancy Technopak. The type of goods sold through Amazon made up $1.6 billion of the total last year, according to researcher Forrester, and Technopak expects that figure to swell to $76 billion by 2021.

By comparison, e-commerce sales in China are likely to surpass $180 billion this year, according to researcher eMarketer.

Yesterday Flipkart Now Amazon

Amazon to invest $2 billion in India, a day after Flipkart's $1 billion funding

Jeff Bezos said he will spend $2 billion (Rs 12,000 crore) to grow Amazon's online retail business in India in what amounted to a dare to Indian market leader Flipkart which only on Tuesday announced raising $1 billion in funding from a bevy of global investors. 

This is the strongest indication by the Seattle-based Internet entrepreneur of his intent to battle for top honours in the Indian online retail market where Amazon is on track to record sales of over Rs 6,000 crore in just over a year of operations.

"We've never seen anything like this," said Bezos, the founder and chief executive officer of Amazon. "After our first year in business, the response from customers and small and medium-sized businesses in India has far surpassed our expectations," he said in a statement on Wednesday. 

By making this announcement within a week of Amazon declaring a loss of $126 million on revenue of $19.34 billion in second quarter of 2014, Bezos is seen to be signalling in no uncertain terms his commitment to grow his business in India after having failed to make inroads in the Chinese online retail industry dominated by Jack Ma's Alibaba Group. 

We see huge potential in the Indian economy and for the growth of ecommerce in India. Our team can continue to think big, innovate, and raise the bar for customers in India," he said. Experts said Amazon's salvo is a clear message to competitors that it does not want to play second fiddle to anyone. "They want to be seen as a leader, not as a challenger," said Arvind Singhal, chairman of retail advisory Technopak. 

Flipkart, which is now also backed by Singapore's sovereign wealth fund GIC in addition to existing investors like South Africa's Naspers and Tiger Global Management who led the latest round of funding, has now received over $1.7 billion in risk capital funding. 

Thirty-two year old Sachin Bansal, Flipkart's chief executive officer, said his company, which investors have valued at $7 billion, will use the latest round of funding to "shape the market in a way that we want." The Bangalore company is expected to splurge money on more discounts for customers, make acquisitions, beef up its logistics network and build out greater capability in mobile and payment technologies. "We are confident that as a local entrepreneurial company, Flipkart has the advantage of being on the ground and better connected to the market we serve," said Bansal. 

Amazon's aggression is already apparent - it now sells over 17 million products across 28 categories and hosts 8,500 merchants on its platform -- and that is expected to only increase. Earlier this week it opened five more warehouses, almost doubling its storage capacity to over half million square feet. 

"From day one, our ambition has been to be India's most customer-centric company," said Amit Agarwal, vice-president and country head of Amazon.in. Investments in product categories, logistics, increasing seller base and in mobile technologies will increase, according to the 40-year-old Amazon executive who reports directly to founder Bezos. 

The all-out war in the Indian online retail space is increasingly being fought on the mobile platform. Amazon said about 35 % of all sales in India come through mobile devices while Flipkart and Snapdeal claim that nearly 50% of all transactions are on hand-held devices. 

By stepping up to tell the world about Amazon's progress in India, Bezos wants to assure customers that his company is here to stay while at the same time declaring war on his rivals, primarily Flipkart. 

"It is abnormal for Bezos to talk about numbers. He never talks about investments or top line. This shows how important India is to Amazon. This is completely new," said a senior executive at a consumer internet company who until last year was employed at Amazon. "He wants to show that if Flipkart spends one dollar, Amazon will spend two." 

Career Move Through Social Media

How & Why to Use social media before making any career move

Social media is proving to be an important bridge between an employer and its staff as an increasing percentage of employees are using this medium before making any career move, says a Kelly Services report. 

The advent of online talent communities and online job boards not only helps companies to find the right talent, it also helps employees to have more information about their preferred places to work. 

Hiring tools like online talent communities and online job boards help employees make better decisions and at the same time help employers identify outstanding talent at a time when many employees may not be actively pursuing a Job change. 

"The arrival of digital and online communications has opened up a plethora of conversations about work and the workplace. Employers now have a number of avenues to attract the most compelling talent and to convey information about their businesses as preferred places to work," Kelly Services India & Malaysia Managing Director Kamal Karanth said. 

This has made it possible to identify and engage passive job seekers who may be open to the right job at the right time, Karanth added. 

According to Kelly Global Workforce Index ( KGWI), social media and online tools are being used as a vital determinant in deciding job for a potential candidate. 

"With changing mindsets and perceptions, more online talent communities have sprouted and employees also seen to be more eager now to learn about company details, workplace, reputation before applying for a job and at the same time get access to job opportunities along with trusted industry information," Karanth said. 

In the Financial Services & Insurance Sector 37 per cent of employees have been part of online talent communities which has become a primary source to exchange intelligence and share latest industry updates. 

Moreover, in the Indian life sciences sector also 65 per cent employees use social media in making a career or employment decision. 

One Common Thing Successful People Always Do...

What One Common Thing Successful People Always Do?

There are a few things that incredibly successful people do differently than the rest of us, says Bernard Marr, a global enterprise performance expert and a best-selling business author, in a recent LinkedIn post. One thing they always do: spot and grab opportunities as they present themselves.

"[This is] an important skill, and one that many of the most successful and powerful entrepreneurs and business people of the world have turned into quite a lot of money," Marr explains.

He offers the following four examples:

Richard Branson never tries to create something entirely new; he looks for opportunities to "improve on what already exists in a meaningful way."

Branson originally wanted to be a journalist and editor, Marr explains, but he quickly realized he had to learn to become an entrepreneur to keep his magazine afloat. "Since then, Branson has become the epitome of the savvy businessman who knows how to spot an opportunity," Marr says.

"Branson's calling card these days involves seeing a somewhat staid and rigid industry - like the airline industry or mobile phone industry - and flipping it on its head, making it cool, unique, different, and calling a very unique set of customers in who weren't being served by the old guard."

Mary Kay Ash saw opportunities in obstacles.

When the founder of Mary Kay Cosmetics was denied a promotion, she took $5,000 of her life savings and "turned it into one of the largest, most successful multi-level marketing companies ever at a time when female CEOs were still extremely rare," Marr says.

Ash never let a setback sideline her. Instead, she saw obstacles as "impetus to create something new."

Madam C.J. Walker recognized needs that weren't being met and developed a way to meet them.

Walker, the creator of a popular line of African-American hair care products and America's first self-made female millionaire, discovered opportunities as a matter of necessity.

She was earning less than a dollar a day as a washer woman when her husband died, supporting herself and her young daughter, who she wanted to be able to give a formal education.

"Walker had to take care of her family, but also saw a need for beauty products that catered to her unique needs as an African-American woman," Marr explains. If you want to be successful, you need to realize that opportunity can masquerade as necessity, he says.

Thomas Edison didn't see failure as a sign to stop, but rather a sign to keep going.

Edison once said, "I have not failed. I've just found 10,000 ways that won't work."

"[He] definitely understood the value of work," Marr says. "Edison understood that a single invention was unlikely to make and sustain the sort of success he wanted, so he continued working, challenging, and pursuing new ideas well past the stage when many would have given up."

Opportunity doesn't always present itself as the easiest option, Marr explains. "But sometimes as a reward to those who keep working."

Top 10 Rising Social Networks

10 Rising Social Networks You Should Explore

Had enough of Facebook and Twitter? It may be time to switch up your go-to social network.

With the daily explosion of startups, there are plenty of new social media tools popping up. These newer platforms could be working on the next big thing, so you'll want to keep an eye out.

Here's a look at 10 up-and-coming social networks you should know.

1. Secret

Secret offers a platform for users to share their feelings and thoughts anonymously. All secrets come from Facebook friends or people in your contacts, without you knowing who they are.

The app is available for both Android and iOS devices.

2. Shots

Addicted to taking selfies? This app was designed for you. Shots is a mobile social network through which you can snap and share selfies. You can reply to any given Shot, and also send private messages.

The app is only available for iOS, but will be launching an Android version soon.

3. Snapchat

Snapchat is a popular mobile platform that allows you to share photos and videos with others. You can set a time limit for how long your viewers can see your snaps before they disappear. You can also create Stories, or a series of snaps that form a narrative, and use a variety of features for customization.

Snapchat is available for both Android and iOS devices.

4. WeChat

WeChat is a mobile text and voice messaging service. In addition to making free calls, you can share videos and photos (or "Moments"), create group chats, and find new people nearby.

The app is available for Android, iOS and several other devices.

5. We Heart It

Think of this as a younger and artsier version of Pinterest. Instead of pin boards, the app has "canvases" and "collections." Users can "heart" and tag others users in photos.

We Heart It is available for both Android and iOS devices.

6. Tinder

While not exactly a social network, Tinder is a mobile dating app that pulls your photo and basic info from your Facebook account. Users can swipe "yes" or "no" to potential matches who are nearby. If the feeling is mutual, people can chat within the app.

Tinder is available for both Android and iOS devices.

7. Medium

Medium is a micro blogging platform that launched in 2012, created by Evan Williams and Biz Stone (formerly of Twitter). If you want to publish stories or ideas, you may want to consider using Medium. Users can also recommend stories with their networks and curate their favorites.

8. Vine

Seven months after Twitter acquired Vine, the video sharing service made its way up the charts. The fun app allows you to shoot and share six-second looped videos.

Vine is available for both Android and iOS devices.

9. Bubblews

Bubblews, a social networking startup, allows users to create posts (aka "bubbles"), follow friends, and "like" and comment on other bubbles. It differs from other social networks because the company pays its users who attract advertisers and traffic. Currently, Bubblews does not have a mobile app.

10. Whisper

Whisper is another social media platform that allows people to anonymously share secrets. With Whisper, you can send anonymous direct messages and ask others for advice, or just chat.

The app is available for both Android and iOS devices.

Rags To Riches

Flipkart's Journey From Rs 400,000 To $1 Billion Firm

In the biggest fund-raising ever for an Indian e-commerce company, Flipkart on Tuesday attracted a whopping $1 billion from its existing investors Tiger Global Management and Naspers.

As per industry experts, the Bangalore-based company is now valued at somewhere between $5 and $6 billion - double the estimated value of $2.5-3 billion in May this year.

Flipkart co-founders Sachin Bansal and Binny Bansal want to make Flipkart the country's first Internet company to be valued at $100 billion.

Flipkart has till now garnered almost $1.7 billion as it battles Amazon and Snapdeal for the top slot.

Here, we present a timeline of Flipkart's funding - how the seven-year-old company that founders started off with just Rs 400,000 - is now worth thousands of crores.

Timeline

October 14, 2008 - Co-founders Sachin Bansal and Binny Bansal start Flipkart with a capital of Rs 400,000

July 15, 2010 - Tiger Global joins with an investment of $10 million

June 16, 2011 - The company announces new logo and gets another investment of $20 million by Tiger Global

August 24, 2012 - Investment of $150 million by Tiger Global and Naspers group, crosses gross sales of Rs 100 crore

July 10, 2013 - Attracts investment of $200 million from Tiger Global, Naspers, Accel Partners and Iconiq Capital, crosses single-day shipment of 1.3 lakh

October 9, 2013 - Another investment of $160 million by Dragoneer Investment Group, Morgan Stanley Investment Management, Sofina, Vulcan Capital and Tiger Global

May 26, 2014 - Flipkart acquires Myntra

July 29, 2014 - Attracted a whopping $1 billion from Tiger Global Management and Naspers

Just a day after Flipkart announced raising $1 billion, e-commerce giant Amazon, too, announced to invest an additional $2 billion in India to expand its growth in the country.