Happy Diwali !

Happy  Diwali !

Microsoft CEO Satya Nadella's pay package tops $80 million with big stock awards

Reuters | 21 Oct, 2014, 07.04AM IST 

SEATTLE: Microsoft Corp's new Chief Executive Satya Nadella has become one the technology industry's biggest earners, with a total compensation package worth $84.3 million this year, according to a document filed with securities regulators on Monday. 

The outsize number is mostly made up of the estimated value of certain one-time stock awards given to Nadella, who became the company's third CEO in February. Most of it Nadella cannot actually receive until 2019. 

The massive stock awards, valued at $79.8 million overall, were designed to keep Nadella at Microsoft while the company was hunting for a new CEO and to give him long-term incentives as CEO. 

Large stock awards have not been necessary for Microsoft's previous two CEOs, Bill Gates and Steve Ballmer, as both had multi-billion dollar holdings in the company. Microsoft is also slightly hampered in ensuring the loyalty of its top executives as none of them have employment contracts with the company. 

Disclosure of Nadella's rich pay package comes at an awkward time for the new CEO, just 11 days after he urged women in technology not to ask for pay raises but trust in "karma" to get a fair salary. Nadella earlier on Monday said men and women are paid equally at Microsoft. 

According to Microsoft's proxy statement filed with the U.S. Securities and Exchange Commission, Nadella is slated to receive stock worth an estimated $59.2 million under a long-term incentive scheme that stretches out over seven years and is dependent on Microsoft's shares beating the Standard & Poor's 500 index. He got a further award worth $13.5 million to stay at the company while it was searching for its next CEO. 

Excluding those one-time stock awards, Nadella's pay package totaled $11.6 million this year, including $918,000 in salary, a $3.6 million cash bonus, and an annual stock award valued at just over $7 million. 

Nadella was not the only executive to benefit from the uncertainty at Microsoft between August last year and February, as the company looked for its next CEO. Chief Operating Officer Kevin Turner was awarded shares valued at $10 million and head lawyer Brad Smith was awarded $9.6 million worth. 

In the future, Nadella's compensation is set to be more modest, with "total target compensation" for fiscal 2015 set at $18 million, according to the company's proxy filing. That includes a base salary of $1.2 million, a maximum cash bonus of three times his salary, plus shares worth $13.2 million.

Diwali Gifts:Surat diamond exporter showers flats, cars on staff

While 200 who did not own houses got about Rs 4 lakh each to buy flats, 491 who didn't own cars were given Fiat Puntos

    BS :Vinay Umarji  |  Ahmedabad  

October 21, 2014 

Surat-based diamond exporter Savji Dholakia has gifted 1,216 of his employees flats, cars and gold and diamond jewellery, as part of a loyalty programme.

With his company, Hari Krishna Exports, expected to record Rs 6,000 crore of exports, founder chairman Dholakia has given away Rs 50 crore worth of benefits to various employees, over and above the annual Diwali bonus. While about 200 employees who did not own houses received about Rs 4 lakh each to buy flats, 491 who didn't own cars were given new Fiat Puntos. Another 525 employees were gifted gold & diamond jewellery.

The company ensured only those who didn't own houses were eligible for flats, while those owning house but not cars got Puntos.

It not only gave away Rs 4 lakh each as down-payment for buying residential flats worth Rs 16 lakh each, but also offered interest-free loans for the remaining payment of Rs 12 lakh.

"In 1991, we recorded our first exports, worth Rs 1 crore. Today, our employees have led us to Rs 6,000 crore worth of exports. We have always believed in motivating our employees and, therefore, planned a loyalty programme this time to identify about 1,200 employees who contributed significantly to our growth. We had earmarked about Rs 50 crore as part of the loyalty programme," Dholakia said, adding last year, the company had gifted cars to 72 such employees.

"Gifting cars isn't new for us. We gifted Maruti cars to three employees 18 years ago; later, they became partners in the business. We see them not as our employees, but as shareholders," he said.

To identify "high-performing" employees, the company has been keeping track of its staff's work through in-house software, for five years. "The software helped us track employees who helped the company reach where it is today. We want our employees to grow in their personal lives, own a house or a car or jewellery, in return for their contribution in growing Hari Krishna Exports," Dholakia said.

Kanak Patel, administration manager at the 6,500 employee-strong company, who has been with the company since 2005, said Dholakia had ensured his employees remained motivated through the year. He added the chairman checked the company's suggestion box every day.

"Last year, I was one of the 72 employees who were gifted cars. Since I already own a house and a car now, I received jewellery as part of the programme. While such a loyalty programme has been conducted for the first time, the company does ensure we remain motivated through the year through various programme and facilities such as a gym, a cricket ground and an in-house clinic," Patel said.

"Two years ago, the company organised a pilgrimage to Haridwar for the parents of its employees," he added.

Dinesh Navadiya, president of the Surat Diamond Association, said, "At a time when youngsters are shying away from joining the diamond sector, such a move could attract more manpower."

YES Bank plans to enter credit card business

 

Not to charge own customer for more than 5 ATM transactions

 B S :Nupur Anand  |  Mumbai  

October 21, 2014 Last Updated at 00:47 IST

In a bid to strengthen its retail credit portfolio, private sector lender YES Bank is looking at entering the credit card business.

“Credit card is one thing that is missing in our portfolio and we would surely like to enter that. But launching a credit card business takes a minimum of eight-ten months as there are lots of things such as underwriting, marketing etc that one needs to take care of,” said Pralay Mondal, senior group president-Retail & Business Banking.

The new generation private sector lender, which started its operations in 2004, has a customer base of 1 million and would look at launching its credit card business once the customer base hits the 1.5-million mark. The bank has been focusing on customer acquisitions aggressively and is confident of reaching the mark soon.

Mondal said the bank would be focusing on starting the credit card business organically instead of taking the inorganic route. “There are not very good opportunities present in the market now. And we believe that it is better to grow the business slowly and steadily. So even after entering, we would like to focus on giving unsecured credit only to our internal customer.”

The bank has working at growing its retail business mix. Currently, retail contributes to 43 per cent of the total business. Mondal believes it is likely that the retail mix can increase to 50 per cent in two years.

Several large lenders, both Indian and foreign, such as HDFC Bank, SBI Cards and Citibank, have been growing their credit card portfolios aggressively over the past few years. Banks had became cautious of unsecured lending following the 2008 financial crisis but later with availability of credit scores from credit information companies and improved repayment behaviour of the customers, banks are again growing their credit card portfolios.

According to Reserve Bank of India data, at the end of June, there were 19.47 million outstanding cards in the banking system as compared to 19.13 million during the same period last year. However, in terms of value of transactions in the same period, credit card spends have increased by 30.6 per cent. Banks are now focusing on encouraging their customers to use their credit cards frequently and cleaning out inactive cards.

Separately, Mondal said YES Bank has decided to not charge its customers for transacting at ATMs even beyond five transactions. Recently, RBI had allowed banks to charge customers for ATMusage — both financial and non-financial transactions — beyond five transactions a month from November 1.

Mondal explained that since the bank is in customer acquisition mode, they believe that not charging customers for ATM transactions will be an advantage for them.

Diwali Gifts : Try Matching This: Car, Flat, Diamond as Diwali Bonus

 Express News Service

: 21st October 2014 06:00 AM

MUMBAI: For Savjibhai Dholakia, Diwali gifts are not limited to only sweets and dry fruits. This diamond magnate from Surat in Gujarat has been rewarding employees of his firm with diamond jewellery, new cars and flats for meeting their annual targets for the last three years.

Dholakia, chief executive officer of Hari Krishna Exporters, which manufactures cut and polished diamonds, did it again this year, presenting valuable gifts to 1,268 employees.

He awarded brand-new Fiat Punto cars to 491 workers, diamond jewellery to 570 and houses to 207.

The employees were asked to choose from one of the three.

Established in 1992, Dholakia’s company is worth of Rs 6,000 crore. “Performance and growth-based programme is the base for selecting employees for this reward,” he told Express over phone.

He said artisans who generate more revenue than the machine value of a diamond are chosen for the award.

Dholakia had set aside Rs 50 crore for the reward scheme he calls “loyalty programme”.

“I am not giving them anything from my pocket. This is part of the profit they earned for the company. I recognise the efforts of high performers and make them my partners,” the diamond merchant said.

The idea came to Dholakia three years ago. Then, he had awarded 10 people for their hard work. The number went up to 100 the next year.

“I told my employees that if the number of awardees can go to 100 from 10, why can’t it be 1,000 this year. This time 1,321 people are eligible for the reward. I do it purely to motivate them,” said Dholakia.

Fondly known as Savji kaka, Dholakia is a native of Dudhala village in Amreli district of Gujarat.

 He came to Surat in the late 1970s in search of a job. Penniless, Dholakia went to his uncle and borrowed some money to start the diamond business on a small scale. 

After years of struggle he established his own company in 1992.