Look, where the ‘brains’ are going, brother!

IIPM PUBLICATION

Que: Do you think our country would be in better shape if it had better managers, or do the “best and brightest” actually lead American business? ( Bruce Frohman, Modesto, Calif.)

Ans: It depends what you mean by business. If your definition includes hedge funds, private equity, and investment banking, then the answer is a fl at “Yes.” If by business, you’re referring to the industrial and consumer companies at the core of our economy, the answer is: “Less and less so.” And therein lies a problem.

OK, maybe it’s not a big problem yet. But there is definitely a worrisome trend emerging, in that a burgeoning number of talented senior executives are leaving publicly traded businesses for privately held concerns. And not only in the upper echelons – it’s happening in middle management and at business schools too. An increasing number of MBAs, particularly those in the top tier of their classes, are also answering the siren song of private equity and hedge funds. In 2006, for instance, almost 25 percent of the graduating class of Harvard Business School took jobs in those two industries. One reason, of course, is that compensation for senior managers in public companies doesn’t compare to the heaps routinely handed out by private equity and financial firms.

For Complete IIPM Article, Click on IIPM Article

Source : IIPM Editorial, 2007

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Rashmi Bansal Publisher of JAMMAG magazine caught red-handed, for details click on the following links.

• Hindustan Times Article - Publisher goes underground
• Rashmi Bansal (Editor of JAMMAG)
• Rashmi Bansal (Publisher of JAMMAG)