The one-size-fits-all approach adopted by the AICTE is not suitable for regulating business schools in India, argues Asish K Bhattacharyya.
'It is important that employees are trained to acquire skills that would be needed in future, when the company sees disruption coming -- that is, much before the disruption occurs or the company plans to change the business model,' says Asish K Bhattacharyya.
The Infosys saga shows how efforts to remote-control a company by its powerful promoter, even with good intentions, might hurt the entity, says Asish K Bhattacharyya.
United Spirits had a tough time in recent past due to management related issues. Going ahead, corporate governance is a big challenge, say experts.
Recently, Sebi has revised the Code of Corporate Governance for listed companies significantly. Most revisions are in sync with the provisions in the Companies Act 2013, though some norms are stricter than those in the Companies Act 2013.
Institutions created to protect non-controlling shareholders, especially in family businesses and public sector enterprises, are ineffective.
Excessive CEO compensation is a matter of debate and research all over the globe. According to an estimate, in USA, the CEO compensation is 400 times the average compensation of employees in the company.
The aim is to provide information that is relevant for economic decision-making by inves-tors and creditors. The information is also used to evaluate management in its stewardship function. It is expected that the infor-mation in financial report should be presented in such a manner that it is easy to comprehend and analyse.
Audit is being questioned by investors. Subhiksha is an example. In the case of Siemens India, institutional investors questioned the valuation in a deal involving the sale of Siemens Information Systems to German parent Siemens AG. This shows the low level of investor confidence in the corporate governance system. The audit committee mechanisms need strengthening.
Most managers coming to b-schools for executive education lack accounting literacy. The situation is no different in the US or Europe.
EPS is not a good measure of performance because it does not consider the opportunity cost of capital and can be manipulated by short-term actions.
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