My View on "How government selects bank chiefs":
Issues raised here are relevant for government and public sector in general. Government (some officials and ministers) think they are the owners of PSUs and PSBs (in a way, they are!) and use them for carrying out their agenda and for milking them dry to quench their thirst. Some of these institutions (and government) get the private sector-rejects or retired/retiring government officials at their top who carry out the wishes of their masters in government. It is not that these organizations cannot compete with their private sector counterparts. They will outperform them, if a level playing field in terms of skill, technology, opportunities and autonomy in management (including freedom in managing HR) is assured. But, to make this possible, the selection procedure, at least from middle-management level and compensation package will need an overhaul. Career progression with appropriate provision for inter-mobility within the organization and at higher levels within the sector will have to be planned with the ideal age profiles at various levels and the need for a minimum tenure of 5 years for those who reach that level. The ridiculously low level of remuneration packages at higher levels in government and public sector (including statutory bodies) is the root cause of inefficiency and ‘yours obediently’ approach of these institutions. Even the RBI Governor is not paid a salary which can take care of the normal lifestyle needs in the area where he is given a residence.
- M.G.Warrier
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