May 24, 2005

The rush to hire independent directors

Indian capital market regulator SEBI has warned that companies not complying with the rules of having independent directors of at least 50 percent of the Board of Directors would face stiff penalties.

According to estimates the numbers would touch 25,000 ! And time is running out. SEBI has said that the deadline that was extended to 31st December would not be extended again.

Seems like this ruling has led to a scramble and should ensure happy times for the Institute of Directors who have launched training classes called Masterclass for Directors where aspiring Directors would be taught 10 modules over six days covering areas like duties of directors, corporate governance, innovation, corporate transformation, CSR, HR, Balanced Scorecard and Six Sigma for only Rs. 35,000 !! IOD has also launched what seems like a headhunting/recruitment organization to meet the demand which they say is around 16,000 .

Other headhunting organizations also seem ready to make a killing. What needs to be seen is whether the energy this drive takes up impacts India Inc by taking its mind off from strategy or execution.