'Indians as global CEOs continuing story; Pandit case one-off'
New Delhi: Exit of Vikram Pandit as chief of banking giant Citigroup may have come as a big surprise, but experts are convinced that it is a one-off case and Indian- origin CEOs would continue to be prominent players at global firms.
Despite Pandit's departure and the charges against another high-profile Indian-origin executive Rajat Gupta, the former Goldman Sachs director, the number of India-born CEOs at reputed international MNCs remains very impressive, the experts said.
"I do not believe that there is any negative perception as such on global Indian CEOs. On the contrary, many of the Indian origin C-suite executives have done very well in the global stage," global executive search Firm EMA Partners International' Managing Partner (Asia Emerging Markets) K Sudarshan said.
Randstad India MD and CEO E Balaji said these incidents are not likely to have an impact because there are hundreds of very successful Indian executives at the helm of global MNCs.
"All global CEOs are under pressure because of the economic situation and strong investor demands. This is not isolated to just India or Indian CEOs it is a global phenomenon and most of the global CEOs are under pressure," he said.
Asked whether the cases of Pandit and Gupta are aberrations or an an emerging trend about diminishing profile of Indian-origin CEOs at global level, most of the experts said these instances should be generalised.
They point out names like Anshu Jain of Deutsche Bank, Padmashree Warrior of Cisco, Rakesh Kapoor of Reckitt Benckiser and Ajay Banga of MasterCard as successful examples as heads of global giants in various sectors.
Citigroup last week announced that Pandit was resigning as its CEO, taking the business world by surprise as he was credited with a major turnaround of the global banking giant from a deep crisis it had plunged into in 2007-2008.
A number of western media reports in the past have also said that Indra Nooyi, Chairman and CEO of food and beverages major PepsiCo, is facing heat from investors. She has been running the company since late 2006. However, the experts here are convinced that Nooyi is doing a wonderful job at PepsiCo.
"She has done a stellar job in Pepsi in difficult and changing market conditions and given the way carbonated drinks are perceived in an era where people are more health and fitness conscious," Sudarshan said.
"PepsiCo has a much wider product portfolio and I believe it is unfair just to compare them only with Coca Cola and pass judgement on her contribution," he added.
On the measures announced by the government like diesel price hike and restriction on the number of subsidised cylinders, and their impact on the rupee, Venkatesh of IDBI Bank said this will restrict the subsidy budget and would help bridging the fiscal deficit.
"Auction of spectrum and disinvestment are likely to bridge the deficit numbers, which will support the domestic currency," he added.
Another official from a public sector bank said international factors will be the key to the currency movement in the near-term.
"The movement of the euro along with global economic environment will give cue to the domestic currency this week," he said.
He also said the rupee may regain the 52 level in the coming weeks on the back of capital inflows.