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.
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.