Skip to main content

Corporatization of greed

The recent news of layoffs in IT companies raised much hulla-bullao across all circles. For it was the only golden goose in job sector which paid good money upfront from fresher onwards, that lured grads from across all engineering and management streams to join IT. Till 2 years back, its common knowledge that, clear 12th, join any stream in BE and get into IT after 4 years of UG study, was the society norm. With engineering colleges mushrooming across, even, empty terraces, past year has seen several scores of those colleges shutting shop due to lack of patronage. Surprisingly, the younger sibling of ITI study, which had been given step motherly treatment all this while seems to have picked up steam this year with their admission coffers crying full. Why suddenly the golden industry has lost its sheen. The answer lies in one of the 7 sins – greed. When I say greed, i don’t just mean the promoters and major shareholders, but every single shareholder of those companies, who have been crying hoarse whenever the share value goes down and buying like crazy to make big bucks when the share value goes higher. With such a gambling industry being the deciding factor on the company performance, the present situation was bound to happen, with TRUMP or without.

Any company, while going public, puts up their worth in shares for general public and as a promotion give dividend and mouthwatering guidance targets for future quarters. People rush headlong and accumulate shares for that company and every time when the guidance targets are excelled, the share level shoots up and investors rake in the moolah. Repeat the cycle across few years, the bar for making profit keeps increasing and after a while, even meeting the guidance levels are not enough and are often criticized. The pipeline for future projects has to be ever increasing to maintain the unimaginable guidance targets, which is more often than not a possible scenario. And one look at what those projects are will throw light on how people like TRUMP, trample the pipe dreams of shareholders. One policy decision on awarding contracts is just what it needs to change to have far reaching impact on how much the share will increase or decrease. To put it in perspective, people put money on companies, who win projects, pay salary and those who are salaried again goes back and invest in the same share market, make money from it and again invest it back for even more money. When the projects run dry, guidance targets go down. People gets disillusioned with reality faced by the companies and start pulling their money out, which brings the share even down. Companies cut salary or employee counts, the very people, who invested their money in the markets are now super glued between the proverbial rock and hard place. Eventually, it’s the greed of the investors who drive the company to achieve near impossible repeats of double digit profits, who finally end up killing it. It could be majority shareholders, privately owned group or just a bunch of several thousand retail-sum investors. The concept of money making greed is the single common factor which finally drives the nail into the coffin.

The other side of the argument could be from the growth perspective. If at all they don’t go public, how will the companies grow? When the going gets good, people DO make good money. So why deny them of the opportunity to bet on a winning horse? And by publishing guidance figures, all the companies are doing are just promotional activity of their product, which is the company in itself. It’s as simple as Levi’s offering 40% discount as against Lee with only 30%. Only difference, albeit the major and most important one, being it bites the very person back when things go bad.

Whether we like it or not, this wheel of perpetual motion is already well set and cannot be stopped now. With hope being the only company, just have to wait to see the flood recede and for the glory site of the shore.


Popular posts from this blog

Chennai-28 part 2- boys are back

The best thing about the first part of the movie, Chennai-28, that came like a decade back was its originality. The pin code had a role to play and was right in the scheme of things which made the movie a hit. It was a nostalgic walk through for people like me who grew up near that area and all those cricket grounds and lanes and streets had ready recall value. Bonus was the simple story with tongue in cheek one liners and the climax twist that was a roftl howler on the team. Even the songs were memorable and everything clicked well in first part. Very rarely do we get sequels which are a literal continuation with almost the same cast playing their age per the story. A big kudos to the director for the setup. Nothing seems artificial and he has played to the strength of the story pretty well. The cricket crazy boys in first part have all become adults, with none, but for one, are bachelor. They’ve their daily routine life, which other than many things, is totally devoid of playing cri…

La la land

The whole issue of mini-mum usurping the throne is heading towards Stockholm syndrome of a climax. All that is required is for her to appear before mike in a publicized meet and cry a few tears on how people are tarnishing and passing cheap comments on her and blocking her opportunity just because she was an assistant to the late supremo. Social media is abuzz with meme’s of how the ex-servant maid is now going to be the next ruler of the state and are, as usual, over the top in decrying her and her intentions. Some of the comments and memes may straight away invite defamation cases and are out right condemnable even if true. What such people miss out is that, though their intention of stopping a corrupt person to come to power may be justified, their means are not. Not a single meme or post talks about how corrupt she is and what are the charges against her and no one is questioning her source for creating such a vast fortune when her original and only known occupation had always bee…

Remo - Movie review

Much ado about Remo could very well be an apt title for this post. Siva Karthikeyan has reinvented the tried and tested success formula of wastrel hero winning laddu heroine, patented by Dhanush and Vijay and Ajith and who-is-who in the movie industry. At some point of time in their career, before their image started deciding scripts for them, all mass heroes have been victim of picking scripts that were bordering on female harassment to abuse, when the same scenario if applied to the villain would lead to fatal consequences for him what might earn catcalls and whistles and even duet for the hero, mocking the heroine. And all said and done, if she, sanely, decides to reject the advances of the hero, there would be even more bashing bhashans on how selfish womenfolk are as compared to how selfless and pure the guys who woo are, who are in fact wastrels as pronounced by all and sundry, right from their own parents to peers to people of their parish.

Rajini successfully tapped the male e…