The Most Authentic Guide on Personal Finance and Investments


Words of Wisdom : "The man who does not read books, has no advantage over the man who cannot read them." ~ Mark Twain

Finally the Media wakes up to the false 'self-praise' by the promoters

As many of you must have read in the recent past, that some promoters have taken huge pay cuts. And they have advertised this fact to show their sacrificing nature.

The media too was quick to give them good (and free) publicity. However, they missed the total picture.

As I had pointed out on my blog 'How promoters and media mislead people' and an article on Moneycontrol.com 'Here's why promoters taking huge pay cuts is all eyewash' that all this so-called sacrifice is a mere eyewash.


The promoters earn much much much more money from dividends than salaries. In fact, if you calculate, the salary will be a very small percentage of such dividends. Therefore, even if they take 100% pay cut, it will not make even an iota of difference to their finances. However, we who primarily depend on salaries, feel as if they have done a great thing.

And now the media has finally woken up to this reality and published an article highlighting this point - 'Investors Profit as Slump has India Inc at a Loss'.

Of course, let me reiterate that I am in absolute agreement when promoters take home such huge dividends. After all, they take risk; they earn profits; they create employment; they contribute to GDP growth. So the dividend is their justified reward. 


But what I disagree with is when they try to earn some praise by fake means. They don't really need to do so. 

You Learn A Lot By READING... And Even More By SHARING.

Share Button

Ignorance is like a SIGNED BLANK CHEQUE... anyone can MISUSE it.

Subscribe via Email
Books by Sanjay Matai
[Click on the Pic for more info on my books.]
Powered by Blogger.

MUST READ Posts - Sep'18

a. Inflation, Interest Rate and Raghuram Rajan's Dosa Economics
Inflation and Interest Rate Link
Is inflation 'rapidly' squeezing the purchasing power of your money?

 


b. Term Plan Lump-sum Vs Staggered Payout: And The Winner Is...
Term Plan Payout Lumpsum or Staggered
The fight between Lump-sum and Staggered Payout on Term Plans is one-sided.

 


c. How Health Insurance equals Wealth Insurance
Health Wealth Insurance
Is your wealth properly secured against the risk of health issues?