Succession plans in focus as firms lose key executives
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Synopsis
This toll includes only the list of key managerial personnel, whose deaths must be disclosed by listed companies under corporate governance rules. Industry insiders say several top executives, who were not part of key managerial personnel and yet worked in crucial positions, have also died in the last few weeks.
Some top executives of India Inc are also battling critical Covid-19 infections.
At least 20 listed companies in India have lost key, board-level functionaries and top executives since early March, and these untimely deaths have put the spotlight on the need for well-defined succession plans.
How D-Street’s roaring 2020 proved a bittersweet year for India’s ‘midcap mogul’
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Synopsis The former star fund manager of IDFC Mutual Fund is known for his ‘buy and hold’ strategy through which he has over the years discovered hidden gems.
Kenneth Andrade has had a formidable track record of giving 22.3% annualised returns for a decade.
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MUMBAI: One of India’s most accomplished value investors, Kenneth Andrade, is what the Reddit generation will call the original ‘diamond hands’. The former star fund manager of IDFC Mutual Fund is known for his ‘buy and hold’ strategy through which he has over the years discovered hidden gems like Page Industries, MRF and VA Tech Wabag.
The market regulator’s “skin in the game” directive is going to make salary and tax calculations complicated for key executives at fund houses.
The Securities and Exchange Board of India (Sebi) last week ordered that fund houses pay at least 20 per cent of the total compensation of fund managers and other key executives in units in mutual fund (MF) schemes they oversee. The rule is aimed at aligning the interests of the people managing the funds with those of the investors.
Since the value of this portion of the compensation will be market-linked and changing on a daily basis, it is unclear how it will be taken to issue the units and calculate the monthly tax outgo of these executives. If a fund manager is handling several schemes, it becomes even tougher to compute the percentage of salary to be given in fund units and the tax on those.
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MUMBAI: The market regulator’s “skin in the game” directive is going to make salary and tax calculations complicated for key executives at fund houses.
The Securities and Exchange Board of India (Sebi) last week ordered that fund houses pay at least 20 per cent of the total compensation of fund managers and other key executives in units in mutual fund (MF) schemes they oversee. The rule is aimed at aligning the interests of the people managing the funds with those of the investors.
Since the value of this portion of the compensation will be market-linked and changing on a daily basis, it is unclear how it will be taken to issue the units and calculate the monthly tax outgo of these executives. If a fund manager is handling several schemes, it becomes even tougher to compute the percentage of salary to be given in fund units and the tax on those.