Business Today, People

People

Unravelling Of "Giceos'

RANA TALWAR: too aggressive for Chairman Patrick Gillam

It's a bad time to be a CEO. And if you are India-born, and leading a troubled global corporation, it can be worse still. In quick succession, two of the best-known global Indian CEOs (GiCEOs) were eased out last fortnight. Rakesh Gangwal, until recently believed to be ''the most talented executive in the airline industry'', was forced to leave the top job at US Airways after the airline's merger with United Airlines came a cropper. The other equally distinguished executive to be ousted is Rana Talwar of Standard Chartered Bank.

RAKESH GANGWAL: aviation's wonder-kid crash-land

The 48-year-old Gangwal, a Kolkata-native and an IIT-Kanpur alum, probably saw it coming. US Airways-the sixth largest carrier in America-had been bleeding even before the September 11 attacks, post which the losses worsened and Gangwal had to sack 11,000 employees. The departure of Gangwal, who took over as CEO in 1998, is seen as the last big event at an airline awaiting bankruptcy. Barely two years ago, Gangwal was feted as a turnaround artist, having grown US Airways' market cap from $800 million to $8 billion. Had he quit 10 days before he did, he would have received $21 million as a severance package. With the merger falling through, Gangwal may have changed his mind. He now plans to pursue a career in venture capital.

Talwar's resignation, on the other hand, was totally unexpected. In fact, barely two days before his resignation, the bank had denied any tension between its long-serving chairman Patrick Gillam and the 53-year-old Talwar. If things came to a head, it was because of Citigroup's (and Lloyds TSB's) reported interest in StanChart for acquisition. Talwar, an ex-Citibanker himself, had an aggressive style of management, which did not gel with Gillam's. For example, in 2000 Talwar had led StanChart's acquisition of Grindlays Bank, and also bought Chase Manhattan's credit card business in Hong Kong. Talwar wanted StanChart's East Asian operations to be run by locals, whereas Gillam wanted to post people from the headquarters in London. Gillam was also unhappy with Talwar's pay-for-performance philosophy. Conservatives won, the radical lost. Too bad for StanChart.

Clean Log

MICHAEL MASCARENHAS: honourable exit

Better late than never. With just two days to spare before his retirement on November 30, the suspended Managing Director of Air India, Michael Mascarenhas, received a clean chit from the Central Bureau of Investigation, which was probing his alleged favouritism to a London-based general sales agent. ''Today, I feel vindicated,'' said Mascarenhas, who returned to work as MD for one day on November 29. ''I am carrying my suspension letter like a badge of honour.'' In May, the Ministry of Civil Aviation had made the corruption charge and suspended Mascarenhas, who in turn slapped a defamation suit against the ministry. It, however, took 188 days of running round and several rounds of debriefing by the CBI before Mascarenhas was exonerated. He has since withdrawn his defamation suit. Air India may still be spiralling down, but Mascarenhas has bailed out with his reputation intact.

Moving On

INGO SCHWEDER: off to HK, but India's on his mind

He mid-wifed India's first destination hotel and the first luxury spa. And now Ingo Schweder, Managing Director of Mandarin Oriental Hotels India, is moving to Hong Kong to head the chain's spa business world wide. The half-Parsi-half-German isn't severing his links with the country, though. He plans to oversee the hotel's spa at Tehri Garwhal from Hong Kong. ''India has been fantastic for me, I always felt part of the society here,'' says the Rolling Stones fan and hand-gliding enthusiast, who also owns a Marilyn Monroe portrait by Andy Warhol. Lured into India by the Oberois for their Raj Vilas and Cecil (Shimla) projects, Schweder decided to stay on and do a spa project for the Rafael Group, which recently was acquired by Mandarin Oriental. Schweder liked India so much that for nearly a year he fought the relocation. Having given in, he plans to make up with frequent trips to the country.

Issue Contents Write to us Subscription Syndication