The Great Con ~ I

representational image (iStock photo)


The Covid crisis threw up a new term for professionals who were doing their all to handle the pandemic. They were called ‘front-line warriors’, for whom we lit candles, clapped from balconies and showered petals. These front-line warriors included our doctors, health workers, policemen, military and para-military forces, engineers, administrators, scientists, personnel running public utilities and teachers who kept up a minimal teaching function against severe odds.

Our farmers, the e-commerce delivery boys, the food supply staff, the ASHA workers were all working when the city dwellers were scared silly and stayed cooped up inside their homes. Showing gratitude by clapping hands was fine but have we ever wondered how we as a people compensate these front-line warriors in terms of salaries?

Without downplaying the value of the dedicated, self-less and indispensable services provided by some, I repeat some, private health establishments, let us focus for the present only on the government servants amongst these warriors, because they were undeniably at the head of the fight. Heads of Department, or Directors of our top-most government medical institutes, colleges and hospitals take home an average annual salary of Rs 20 to 30 lakhs.

Over a career of 25 to 30 years they can hope to earn anywhere between Rs 5 to 10 crore. These figures also apply to all senior officers in our public services, from engineers to scientists and educators to civil servants. Did we honestly feel beholden to these men and women in the face of the health crisis and devastating experiences all of us went through? Many of us did. We could see how these men and women were risking their own lives to provide succour to the sick.

Many of them, in fact, lost their lives and even larger numbers worked tirelessly days on end, night after night, for days together providing critical care despite the shortage of staff, medicines and even oxygen, in a crumbling health sector. After the candle lighting, we now need to look at how we treat these dedicated persons and how we have dis-incentivised our brightest young people from taking up these challenging professions.

Let me make it clear, this article is not about those who enter these professions to make money, nor is it about people in the public services who have made corruption a part of their lives. We are talking about the honest and upright professionals who join the civil services to serve the people and bring the fruits of economic and technological advances to the common man. Now that we have seen how much the seniormost public servants earn let us look at the incomes and wealth of some other categories of people.

Let us start with the film industry where top Indian actors earn up to Rs 50 to 60 crore per film. Do the simple math, this is 10 times what our senior-most doctor will earn in her lifetime! A top star who hosts a popular quiz show reportedly charges Rs 3 to 5 crore per episode, which is almost equal to a lifetime’s earnings of one of our doctors. The net worth of our star actors and cricketers runs into thousands of crores. Simply put, it will take a hundred lifetimes for our senior-most doctors, engineers, scientists, police and administrative officers, professors and PSU officers to earn as much wealth as these stars have accumulated in a single lifetime.

Top corporate CEOs today earn upwards of Rs 100 crores per annum and even star lawyers, commanding up to Rs 25 lakh per appearance, have net worths of Rs 200 to 250 crore. We have as yet not talked about our corporate big wigs, the captains of industry, topmost among whom are now worth as much as Rs 6 to 7 lakh crores. Roughly, one lakh lifetimes worth of work of a dedicated doctor in the government, or to put it another way, the net worth of one of these top honchos can pay the salary of one lakh doctors for their entire working lives. Does something strike you as wrong here?

To start understanding the con game we must reject the false narrative that some people have inherent qualities of hard work and exceptional intelligence because of which they make so much wealth. Ask the simple question ~ who contributes more to society? The film star, cricketer or a corporate finance officer on the one hand, or a doctor who saves the life of your dear ones, a civil servant who organises critical infrastructure, a police officer working amongst the masses or an engineer who keeps your electricity, water, transport, scavenging and other essential services running.

More questions. Why are film buffs made to shell out Rs 500 for watching a film, or sporting enthusiasts made to pay huge amounts of money for tickets to watch cricket, soccer, basketball or other popular games? Everyone elevated to star status rakes in money at the cost of the common man. We are as yet not talking about how many others make how much on the gravy train, or even how much of the peoples’ wealth is taken out of the country through these ‘new world’ enterprises. Give me one reason why these earnings should not be checked? How are these ‘talented people’ more important to the nation than our doctors, engineers, scientists, teachers, and agriculturists? Even if some of them claim to spend money on charities and anoint themselves as philanthropists, it is still inhuman to steal money from your fans and admirers.

We have had film stars and cricketers in the past but never have we seen this insane concentration of wealth. In 1971, British football skipper Bobby Moore earned around £10,400 but Wayne Rooney till recently made £10 million per year. In 1950, General Motors paid its CEO, Charlie Wilson, $586,000 (the highest salary at that time) and in 2007 its CEO made $15.7 million. Interestingly, in 1950 GM was making a profit but in 2007 it was making a loss. Does something stink here?

Now let us look at a related and frightening phenomenon. Among the top earning 0.1 per cent of Britons, a full 30 per cent now work in finance ~ where “they produce nothing”. In 2009 Meryl Lynch CEO, John Thain was paid $4 billion in executive bonds ~ to ‘retain the best people’. This was right after the ‘over achiever’ had led the company to a net loss of $27 billion. In 2009 again, the top twenty-five hedge fund managers in the world made $25.3 billion i.e. $1 billion or Rs 7,500 crore each. With this kind of money they influence policies and government decisions to further benefit themselves, dismantle financial regulation and evade oversight. They lobby for rules to allow private players using public funds such that they can keep the profits, but let financial bodies bear the losses.

Why do loss-making companies pay shamefully high salaries to their CEOs, and even pay them a bonus, for leading the company to financial ruin? Obviously something is not being talked about. Kickbacks, siphoning out money, corporate secrets, creative accounting, influence peddling, expertise at gaming the system? Will you call this extraordinary intelligence and capacity for hard work? Why not call it what it is ~ theft. If top executives in the corporate world are paid huge salaries for suspect reasons what about our film stars and star sportsmen? The racket here gets linked to advertising, distribution or broadcast rights and the mother of all frauds ~ the TRPs.

Star performers attract advertising revenue and demand a cut in the drawings. So why not reduce the cost of advertising, which will considerably reduce the cost of products and services for the consumer? There is a huge vested interest in this activity, which like star sporting events, among others, provides cover for shifting money out of the country. Talking of star performers in the print and electronic media, top anchors on our TV ‘shouting’ shows earn between Rs 5 to 15 crore every year. Once again, some of these loud, opinionated anchors make more in one year than my senior-most government doctor earns in her lifetime. Let us stop showering petals on our ‘front-line warriors’ till these anomalies are taken care of. Till then let them do their work without distracting them with a show of hollow, false and contrived gratitude.

(The writer is former Chairman, Union Public Service Commission)