Don't pay yourselves too much: Outgoing CII chief to CEOs

Excerpts from What's Hot on CNBC-TV18 Watch the full show » BSE | NSE 10/02/12

He has witnessed a transformational change of Indian industry and policy for almost four decades. He was instrumental in building the Confederation of Indian Industry, an organisation he is synonymous with. As he turns 70, the Chief Mentor of CII, Tarun Das is finally hanging up his boots.
In an interview with CNBC-TV18, Das spoke about his plans for the future and his advice to corporate India.

Here is a verbatim transcript of the exclusive interview with Tarun Das on CNBC-TV18. Also watch the accompanying video.

Q: How did you feel after quitting CII after your 35-year stint?

Tarun Das: I feel pain and pleasure; both, obviously the pain of separation but pleasure because it is like being able to do something in terms of corporate governance in an institution, which is right to do. You need to have an amicable, friendly, warm separation. This is not a messy divorce. I think this is the time to step out; there is a young bunch in CII to run with the ball, to service the industry and grow. So, I think this is a good time.

Q: So have you figured out what you want to do now?

A: A couple of things. One is working a lot with business, because that has been my constituency. Can they do more on issues on the social side? Can they engage with not only India but Bharat? Secondly, with international relationships.

I have been involved with the US, Singapore, Japan and one or two other countries, I want to continue that process because these are about long-term relationships, for mutual benefits for both sides. And I also want to work with China. The huge economic agenda which we have with China, trade and investment, needs to be nursed and nurtured and see how we can handle it better in the future.

Q: So is this going to be in your individual capacity or are we looking at some arrangement with the government?

A: We have a strategy group which is non government. So, I'll work within this strategy group. I coordinate that now. The final thing is that look at some domestic issues. Aspen Institute is all about leadership development and young leaders, work on that because if I can help people like you to be great leaders.

Q: You have seen the Indian economy and the Indian government and its policy see transformational changes. What you would regard as some of the biggest changes that you have witnessed and that have actually changed the course of the economy and where we are today?

A: The biggest change is the fact that Indian industry which was whining about competition and wanting to keep the curtain down is not whining anymore. They are actually competitive, they have restructured and they now have become globally competitive and not just defending India but also going out. So that's a huge change. They are competitive and confident. Between government and industry, when I came to Delhi first, there was only mistrust and an adversarial relationship. I think there is trust now.

Q: What would your advice be to corporate India at this point in time as you hang up your boots at CII?

A: Don't live in your ivory tower. Don't pay yourselves too much because there are lots of poor people in this country and have self restraint. We don't want government controls on emoluments and pay and perks, but we have to be sensitive to the environment in which we live.

Q: So is CII actively going to take up the issue of CEO compensation?

A: I am free to speak now. This is an issue of concern for me that there must be balance and moderation in business, whether CII does it or not I don't know.