UTI finally gets a head, splits CMD post | Business Standard

UTI finally gets a head, splits CMD post | Business Standard

Online comments:
A second reading of the report brings forth the following disturbing truths: • It took 28 months to decide that one single person couldn’t fill the space vacated by U K Sinha. • Institutional shareholders could not guide UTI to find a suitable person to be appointed as CMD. • What prevailed was the view of a minority shareholder ‘from outside’ (the US firm which owned 26 per cent of UTI’s shares). • UTI did not have a succession plan in place for the top job and GOI or the public sector organisations which had majority shareholding did not take enough interest in sorting out issues, at various stages of selection process which led to rejection of a short-listed candidate. • While there is nothing inherently wrong in splitting the CMD’s post, the events that caused the split deserves study to avoid similar situations in any organisation in future. When organisations like RBI, which also depend on GOI to get its top jobs filled, can have all top vacancies filled reasonably fast, the UTI’s failure in this respect, which has partly contributed to stifling of the institution’s growth which has directly impacted the return on investments made by retail investors need to be probed for corrective action. Formulating and implementing succession plans for top government/public sector jobs with professionalism and efficiency in a graceful manner is imperative for allowing the institutions to function successfully in today’s environment where public sector organisations do not get a ‘level playing field’ as compared to private sector counterparts. M G Warrier, Mumbai


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