IIM-A plans

New Delhi, Jan. 14: IIM Ahmedabad has mooted a proposal to offer its new director an annual package of Rs 1 crore, a five-fold raise, to attract talent.

If the proposal survives divisions, the package will be the highest among the Indian Institutes of Management. At present, IIM directors get a package of around Rs 20 lakh a year, including a basic salary of Rs 80,000 per month.

The human resource development ministry had two years ago allowed the business schools to top up the packages from their own resources generated through tuition fees, executive programmes and consultancy.

IIM Ahmedabad is in the process of appointing a director as the tenure of Samir Barua, who is on extension now, ended in October last year.

"The board of governors is planning to offer Rs 1 crore to the new director to ensure that a good academic gets the job," an institute source said.

IIM Ranchi chairperson and Maruti Udyog chairman R.C. Bhargava told The Telegraph the move of IIM Ahmedabad was welcome and would attract the best talent.

Bhargava had headed a committee set up by the HRD ministry in 2011 and had suggested that the IIMs should be allowed to recruit faculty by offering a package of up to Rs 50 lakh a year. But the institutes would have to bear the additional financial requirement from their own resources.

"A director is like the CEO of an institution. Currently, the CEO of a standard company gets around Rs 1 crore to Rs 2 crore per annum. If IIM Ahmedabad is offering Rs 1 crore, it is a good initiative," Bhargava said.

But the package has apparently fuelled a debate among the IIM community. An IIM director said the proposal might set a trend and the new IIMs could be affected. "Can the new IIMs offer such a package? Will it not create categorisation among the IIMs?" the director asked, although an unofficial classification does exist in practice.

He, however, said the present package of Rs 20 lakh should be revised. "You have to think of equity and excellence. In the name of excellence, you cannot ignore equity and vice-versa. You have to strike a balance," he said.

Another IIM director justified the move, saying the package of top administrators at Ivy League institutions in the US was "somewhere between $300,000 and $500,000 a year (between Rs 1.6 crore to Rs 2.7 crore)". "But their corpus is much higher than ours," he added.

Some IIMs have been able to increase their corpus in recent years. IIM Ahmedabad, IIM Bangalore and IIM Calcutta do not depend on the ministry for meeting operational costs like salary, pension, other benefits and maintenance of facilities.

An HRD ministry official said the appointment of the new director would have to be cleared by the ministry. The board of governors will suggest three possible names, the ministry will choose one and send it to the appointments committee of the cabinet. The institute is yet to submit the names or reveal the package they want to offer.

Matches

MORE TOP STORIES TODAY

Bangalore's arsenal blazes to victory

Bangalore's arsenal blazes to victory

Yuvraj Singh was back to his best in his first match for Royal Challengers Bangalore. More »

Time for Chennai to enter familiar cocoon

Time for Chennai to enter familiar cocoon

Chennai have been able to purchase batting replacements for the loss of Michael Hussey and spin reinforcements in the form of Samuel Badree. They appear… More »

Evenly matched Rajasthan and Hyderabad face-off

Evenly matched Rajasthan and Hyderabad face-off

A quality that defines Rajasthan and Hyderabad is consistency. Rajasthan was one among two teams to enjoy complete dominance at home last season. Hyderabad… More »

BCCI to meet before next court hearing

BCCI to meet before next court hearing

The BCCI will hold an emergent working committee meeting on April 20 to discuss the future course of action with regard to the Supreme Court hearing concerning… More »

Kallis, Narine star in Knight Riders’ crushing win

Kallis, Narine star in Knight Riders’ crushing win

An all-round display saw Knight Riders thump Mumbai Indians by 41 runs in the IPL-7 opener. More »

Gavaskar wants a clean IPL

Gavaskar wants a clean IPL

"Integrity is non-negotiable..." says the BCCI's interim chief ahead of Season 7 of the tainted league. More »

'Yak' Kallis still on top of his game

'Yak' Kallis still on top of his game

The 38-year-old South African veteran turned it on for Kolkata Knight RIders in the opening match of IPL-7. More »

Srinivasan named in fixing report: SC

Srinivasan named in fixing report: SC

The court emphasised that the tainted administrator can no longer work for the BCCI. More »

Yuvraj happy to play for RCB: Kohli

Yuvraj happy to play for RCB: Kohli

New-look RCB will play their first game of IPL-7 on Thursday. More »

Shane Watson issues moral warning

Shane Watson issues moral warning

'Everyone knows what is right and what is wrong and if you do the wrong thing it will be found out' More »

Why I'm not looking forward to the IPL

Why I'm not looking forward to the IPL

Welcome to another season of a league that many watch but few trust. More »

IPL: News Line

IPL: News Line

A round-up of all the news from this season of the IPL. More »

Johnson may quit T20s for Tests

Johnson may quit T20s for Tests

Australia's Mitchell Johnson may quit limited-overs cricket to prolong his test career with an eye on the 2015 Ashes series in England, the fast bowler… More »

Nepal players call off boycott

Nepal players call off boycott

Thaw in relations after formation of an advisory committee that would work in tandem with the Cricket Association of Nepal. More »

There's a lot going on: Fleming

There's a lot going on: Fleming

He experienced anxious moments in the lead-up to the tournament as the courts decided on whether to suspend the franchise, he said, but stressed that the… More »

Latif couldn’t work with tainted players

Latif couldn’t work with tainted players

Former Pakistan cricket captain Rashid Latif said Tuesday he turned down the job of national chief selector because he could not work with ex-players tainted… More »

We are not over-confident: Bailey

We are not over-confident: Bailey

Indian Premier League — George Bailey-led Kings XI Punjab will face Chennai Super Kings on Friday. More »

Big runs expected, with bat and ball

Big runs expected, with bat and ball

Royal Challengers Bangalore: Their main concern, once again, is the fast bowling More »

Taxing issue — BCCI hits roadblock

Taxing issue — BCCI hits roadblock

MoU between BCCI & its units to avoid double taxation delayed after a few decline to share details. More »

Black Caps pick rookie duo for West Indies

Black Caps pick rookie duo for West Indies

New Zealand selectors included two new caps in a 15-man Test squad named Tuesday to tour the West Indies, with injury-hit spinner Dan Vettori's future… More »

The stage is set for IPL-7 to start

The stage is set for IPL-7 to start

The Preview — Defending champions Mumbai Indians take on Kolkata Knight Riders More »

Srinivasan appeals to court to allow BCCI comeback

Srinivasan appeals to court to allow BCCI comeback

He was aggrieved by the allegations against him during the hearing. More »

India: cricket's Brazil

India: cricket's Brazil

They are tough to beat with a big talent base exposed to good facilities. (CYCSPL) More »

Delhi Daredevils say no to gifts

Delhi Daredevils say no to gifts

Franchises are doing their bit to refurbish the image of the tainted league. More »