How Does India Export So Many More CEOs Than China?

Discussion in 'China' started by happy, Apr 4, 2014.

  1. happy

    happy Senior Member Senior Member

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    While India may not win many Olympic events, if medals were awarded for C-suite appointments at big, global companies, it would be one of the world’s top contenders.

    With Hyderabad’s Satya Nadella recently crowned one of the most powerful people in technology, a Wall Street Journal article Thursday said many people in China are wondering why so many more Indians than Chinese get top jobs in the U.S.

    One of the main reasons China–which is great at squeezing Olympic gold out of its citizens—doesn’t produce as many global CEOs, the article says, is basic income arbitrage. China’s best and brightest have more opportunities at home and can get paid as much as they would make almost anywhere else.

    No matter where movers and shakers are from, they need some financial incentive to move away from family, friends and favorite foods. Chinese director-level managers in technology companies on average already make around $130,000 a year, which is not far off the $160,000 they can make in the U.S.

    In India, the director-level managers only make $35,000.

    [​IMG]

    That’s not to suggest that India’s world beaters usually leave executive positions at home for big jobs abroad. Most of India’s corporate gold medalists leave India after college and don’t come back.

    They get their degrees from Harvard, Wharton and even the University of Wisconsin and then climb their way up corporate ladders outside of India.

    The list starts with Mr. Nadella, Indra Nooyi, CEO of PepsiCo Inc., Anshu Jain, Co-CEO of Deutsche Bank AG and Ajay Banga, CEO of MasterCard Inc. It continues through Shantanu Narayen, CEO of Adobe Systems, Nikesh Arora, chief business officer at Google Inc., Ajay Waghray, chief information officer of Verizon Enterprise Solutions, Ajit Jain at Berkshire Hathaway Inc., Harmit Singh at Levi Strauss & Co. and Padmasree Warrior at Cisco Systems Inc.

    The list goes on and on and shows that India-born Indians are helping shape most international industries.

    It’s obviously more than just income arbitrage though. While the dysfunctional parts of the Indian economy do boost the brain drain, there are lots of other countries with low salaries and few opportunities that just don’t provide as many international corporate leaders as India does.

    English, of course, helps. Most of India’s elite speak it from childhood and it’s the language of choice for global companies.

    Maybe being raised in a democracy, where individuals are encouraged to speak their minds, also gives India job seekers an edge in the cut-throat world of capitalism.

    India’s diversity is probably another unlikely weapon for the desi road warriors. In your average big university, office or even the better grade schools in India, Hindi is often people’s third language. Growing up in such a diverse atmosphere helps make Indians more capable to move away from home and then feel comfortable and thrive wherever they land.

    How Does India Export So Many More World-Class CEOs Than China? - India Real Time - WSJ
     
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  3. gardenorange

    gardenorange Regular Member

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    Just English skill, I believe. If other factors like democracy work, why Japanese don't export any CEO for the Fortune top 500 companies?
     
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  4. bose

    bose Senior Member Senior Member

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    That is a half thruth!!! There are many others who knows english as good or better than Indians...

    My experience in working in South Asia [Singapore, Taiwan, Malaysia, and Australia] I find the Indians more aggressively oriented than the Chinese & Japanese and their hunger for success... most of the successful Indians come from humble background
     
  5. Known_Unknown

    Known_Unknown Devil's Advocate Stars and Ambassadors

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    Like the article says, India contributes more CEO's to Western companies because Indians leave India in droves to study and immigrate to the West. This, in addition to their good English speaking skills gives them the edge. It's a case of sheer numbers, the only country that can compete with India in terms of numbers is China, but Chinese emigrants have terrible English, heavily accented, poor grammar et al.
     
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  6. PredictablyMalicious

    PredictablyMalicious Punjabi Senior Member

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    Also Chinese are shy. Indians are more outgoing and know how to network and market themselves. North Indians, especially fit this description IMO. Chinese people born in the West have normal accents but they don't have these characteristics.
     
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  7. amoy

    amoy Senior Member Senior Member

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    How many home grown companies from India r there in the hall of fame 【Global Fortune 500 Companies】? How many fm China , or fm Japan? Any drill-down in numbers?

    Sent from my 5910 using Tapatalk 2
     
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  8. jon88

    jon88 Regular Member

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    Indians are more outspoken than the Chinese and Japanese is more the accurate term. Indians tend to have the shorter term emphasis like their Western counterparts. And therefore, as the saying goes... birds of the same kind tend to flock together.

    Or in another word...Indians tend to be good tacticians and East Asians are better strategists.

    Indians want to win battles while East Asians want to win wars

    Indians like Westerners want to be no.1 but East Asians want continuity and participation.

    Zero sum gain vs. win-win
     
    Last edited: Apr 7, 2014
  9. happy

    happy Senior Member Senior Member

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    I think Indians know how to express themselves to any kind of boss and have better ethics and work culture. Everyone will have technical skills but in the end those who can communicate effectively will only be chosen, right ??
     
  10. jon88

    jon88 Regular Member

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    Absolutely agree with you about Indians having a sweet tongue but not the work culture and ethics. We put more value to working smart than working hard, not necessarily about quality and quantity. Working for the good of the company or the employer is the last thing in their mind. It's all about the individual........me culture......another similarity to Western culture.
     
  11. roma

    roma NRI in Europe Senior Member

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    Of course one needs to be able to have a certain level of fluency in English, but once that's achieved, it's no longer a factor.

    One difference - China has good home-based international companies, but Indian people are forced to look abroad,
    because our home-based companies are not yet at the higher multinational levels ( they will get there in time )

    India needs improve the infrastructure and economy - then we should have a good mix of CEO's heading both
    home-based companies and also those abroad .
     
  12. W.G.Ewald

    W.G.Ewald Defence Professionals/ DFI member of 2 Defence Professionals

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    Does the answer to the question even matter to either those two countries in the final analysis? Would China change its policies in any way to change the outcome of the "CEO gap"? It would be like finding a cure for which there is no disease.
     
  13. happy

    happy Senior Member Senior Member

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    For the Chinese, it is more or less a prestige matter...After all, they want to be onatop of all things...:p
     

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