When a company files its prospectus the shareholding of the top management is visible. You realize that each company rewards something – longevity is unquestionably the most rewarded. Well I have reservations on ESOP but that is my view!

In the asset management business, it is funny to talk to people across the spectrum. So the owner feels that he is the brand, and he should be compensated the maximum. The independent financial adviser feels that he alone does the running around, and so he deserves the full cake.

Let us see how the Market allocates the pie. Pie allocation is clearly the job of the market. If the owner gets more than the employee, well that is how it has been sharing the rewards.

The employees feel that they are slogging, so they should earn more. The regulator feels everybody is making too much money, so the expenses should be tempered down. Fair enough.

Then you see that somebody who has spent 25 years in the company has more esop than a guy far superior to this guy! Hey most houses reward a long stay. It has always been like that.

So go and have a look at the drhp of any IPO/FPO/ SFO….the drhp is a publicly available document.

The employee gets rewarded for all the shit that he/she takes from the organis ation. It is not easy to spend 25 years in a not very competent organisation taking all kinds of abuse, transfer, irritation, insults, demotion, delayed promotions,…..

The owner gets compensated for the uncertainty that they faced for say the first 10 years of their existence, and how people treated the business when they were trying to establish themselves in the business.

The distributor gets rewarded for the risk that he takes for distributing the products. It could do well, could do badly….well over 25 years.

Who takes the max risk?

who gets rewarded the best?

what if you are the owner?

what if you are the employee?

what if you are the agent?

what views?