ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Catching On

Catching On Hansavivek HINDUSTAN FERODO's board has decided to cancel the earlier proposal of payment of commission to the whole-time directors on the ground that "changes in fiscal policy have made this a highly expensive way of giving a very small after-tax benefit to the individuals concerned". H D S Hardie, chairman, comments: "When one compares, in a company in India, the range of .salaries after deduction of personal taxation, one cannot fail to be impressed by the negligible advantage in real income which results from promotion to a senior level of responsibility within the organisation". He further adds: "Industrial management is never easy, and can sometimes be frustrating. It certainly does not provide a route under present conditions which enables the energetic manager to accumulate wealth." The company's proposal to issue bonus shares on a one-tor-five basis has been rejected by Government, as the foreign shareholding amounting to approximately 80 per cent would need to be reduced. The board is giving consideration to the means by which a reduction can be brought about.

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