Malvinder Singh of Ranbaxy - Smart CEO

Malvinder Singh of Ranbaxy has proven how smart he has been by selling his stake in Ranbaxy to Daiichi and raked in home the highest ever deal, valued at an jaw dropping $4.6 billion.. But this does not end here. As we all know, as per the agreement, Malvinder will continue to remain as the CEO and Managing Director of the company. And if all this was not smart enough, Malvinder will also now get pay hike, effective from 1^st Janaury 2008. We are not taking of a small pay hike here. Malvinder’s salary will be hiked from the present Rs.19.58 crore to Rs.25 crore! The only ‘stick’ here is that his salary will be frozen at Rs.25 crore till 2011. Fair enough! Surely he would have no complaints about this! This is like having bread, butter and cheese, all together! Now this is what is called as smart negotiating abilities, surely something the IIMs and IITs would like to learn better.

Apart from the over Rs.10,000 crore which Malvinder managed to rake in, he will also earn a salary of Rs.25 crore per annum. Even if we deduct the tax outgo, surely that’s a lot of money as salary, especially in this era of double digit inflation. Infact the joke doing the rounds of the corporate circle is that the best way to beat inflation is by selling one’s stake and then continue working and earning a fat salary in the same company! This ensures that not only does one get tonnes of money sans the earlier responsibility but also can get rid of legal suits by now making “out of court” settlements. Now that’s like a complete win-win situation!