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Many studies of shown that - on average - people working in the field of finance have seen a dramatic increase in their salaries and bonuses over the past 3 decades. Most other sectors have seen little or no growth over that same time period.
A world full of egoistic MBAs?
If someone were to plot a chart with the number of MBAs graduating in the world each year, the corporate scandals, and the amount of money paid to "top management", there would be a very strong correlation.
As a graduate of the MBA Program from Kenan-Flagler, the University of North Carolina at Chapel Hill, I believe that I learnt a lot about the principles of business. This has allowed me to contribute to the various companies I have worked in - including Quantum AMC.
But I know that I cannot take an excessive financial credit for what I have helped build. Many people have contributed to what has been built and - knowing that I have a limited life span - I would expect my share of future contribution to decline dramatically over time.
Most MBAs, though, don't feel that rewards need to be shared. In business schools, we are not taught humility. On the contrary, we are told that we are a special, select group of extremely smart individuals. The business schools will teach and equip us with tools that will allow us to have a tremendous impact on the companies we work for. We are brainwashed into believing that we are mini-gods ready to rule the world.
It is a rare business course - and an even rarer teacher - who will tell us to work for the benefit of society.
To prove the point, after the various financial scandals in 2008, the Dean of Harvard Business School suggested that Harvard needed to have a charter of ethics. Which makes you wonder: what exactly were they teaching those brilliant students at HBS all these years? How to cheat society?
The roster of financial geniuses who find new ways to mess up the lives of millions of people - and then have the lobbying power with governments to write themselves a bail out cheque using tax payer's money - are from many of these infamous business schools.
Companies should be built to benefit society - and to find ways to reward a larger number of people with a larger share of the total pie. And there is this view that the only value-add in life and to society is what can be measured in terms of some market cap or some GDP number. That is humbug: happiness is not measureable by money alone.
But this concept sounds alien - the world has been infested with the demi-god CEOs and their armies of swashbuckling MBAs. The media worships them when they should be shaming them.
Mr Thomas Minder in distant Switzerland has reminded us that governments - and institutional shareholders (presently part of the same racketeering "maximise my pay" exercise) - have a right and responsibility to bring some balance back in the reward structures.
The fat cats need to be slimmed down big time - it is time to bring out the surgeon's knife.
Correcting the imbalance - knowing the geniuses still want their outsized share!
Meanwhile, our own little effort to correct the imbalances has begun. The National Streets for the Performing Arts (www.NSPA.in) started an initiative to pay musicians a fixed fee for every hour of musical performance at public places. This began in October, 2012 with the initial involvement of 8 musicians. Today, over 20 musicians have signed up to perform. We have sparked off an estimated 400,000 smiles - and recognise there are millions of souls yet to stir.
A musician working with NSPA, on average, makes maybe Rs 360,000 per year for all their efforts to bring some joy to society and soul to its people.
Our stated objective: the world will be a lot better place when a musician - on average - earns more than a dead soul working for the financial crooks.
And - in case you believe that the financial firms have been reformed - this breaking headline from AsianInvestor: Goldman laments brain-drain in smart solutions: Stefan Bollinger, head of the firm's private investor product group and Asia corporate sales, believes there is too much focus on vanilla business at the expense of innovative ideas.
In September 2010, when the fury over bail outs of the fat cat financial firms was at its highest, the same Stefan Bollinger's plan was outlined in an article with the same publication as: The US firm outlines plans for building its solutions platform for private investors in Asia, focusing on simple, transparent and liquid products.
But that was then. The US and global governments and regulators are no longer seen as enemies of the financial firms. The Great Swindle has been forgotten. The sins of the past have been washed out. The pretence of simplicity is no longer required. It is time to go out and reach for your wallet!
You've heard it directly from those who do God's work, there was no Pope required to interpret this message: it is time to innovate and blow up the world - and keep collecting their oversized salaries.
Yes, NSPA and its ambition to ensure musicians and others from the Arts get rewarded more for their contribution to society has got a long way to go...but it's a start....
Suggested allocation in Quantum Mutual Funds (after keeping safe money aside)