FORGET FAT PACKAGES & ESOPS, EXECS NOW WANT LUXE CARS TOO

Mahima Puri & Chanchal Pal Chauhan, New Delhi, September 8, 2008
The Economic Times

Fat bonuses are passé. So are million-dollar stock options. For the top dogs in India Inc, the latest and priciest carrots are luxe marques that look beyond Mercs. From Beamers and Audis to Porsches and Rolls, the line-up is getting fast, furious and seriously fancy.

Suddenly, even big wheels aren’t enough. To be a sticky sop, the wheels have to be bespoke. Picture this—a newly appointed CEO of a major retail company was offered a hefty salary package, but his demands went much beyond just monetary considerations.

His ask—a Mercedes SLK 500 to drive to work. And, the company was happy to oblige. Make no mistake–this car mania is not restricted to a particular sector. In another instance, the CEO of a BPO was offered an Audi before he joined. Nor is this drive peculiar to current sunshine sectors like retail or ITeS. Corner room occupants in banking, aviation and energy are also demanding and getting their share of asphalt adrenalin.

The mad rush for these cars is partly thanks to their growing tyre print on Indian roads. And typically it is the pricier models/variants that are in demand. Said BMW India president Peter Kronschnabel, “We are selling around 30 percent of our cars to corporate customers. We have re-jigged some of our models like the 320i, which is more chauffeur driven and offers more space at the rear. In the second year of operation in India, we have seen a sizeable shift towards the larger and expensive, 5Series coming in the Rs 40 to Rs 50 lakh bracket.”

Head-hunting firms agree that cars are the new crore-competence at the top of the job heap. Transearch India managing partner Atul Vohra said, “For CXOs, cars speak volumes. And unlike in the past, the choice for the ‘executive car’ now goes beyond Mercs to Audis to BMWs with new offerings being added each year. In most cases, the size of the car is directly proportional to the negotiating strength or position of the candidate. Hence, for indispensable talent, companies do not mind providing just about anything on wheels.”

Agreed Head Hunters India CEO Kris Lakshmikanth, “There have been cases where cars have played a vital role in a make or break situation. Like, an energy company had to negotiate for six months before they gave in to the demands of the desired candidate. Reason, he wanted a luxury sedan, at least on par with his last car if not more.”

Nor are the sops restricted to the top guys. Now it’s the middle-level executives who are being pampered even more. Companies are also offering models like the Honda Accord, Toyota Camry and Skoda Laura to their heads.

Also, employees at mid-level managerial positions or key sales personnel are also being offered hatchbacks or mid-size sedans like the Hyundai i10 or Accent, Swift or Dzire and Skoda Fabia, among others.