The Hindu Business Line : Economics of succession

Almost everyone likes continuity. Almost everyone hates surprises. That is the case with analysts and investor communities. They love continuity and they hate surprises. If anyone has any doubt about that, they only need look at any sector or company report written by any analyst. From that perspective as well as an economic perspective, it is very important for companies to plan for a succession at the top. This is especially so if the company is doing well. Analysts and investors would feel much better if there is someone being groomed to take over from the CEO rather than if there is no one. The thing here is that that good feeling usually means that they write better reports and that more often than not translates into a much better stock price.

If there is good succession planning and if the company is doing well, the investor community at large will be satisfied that the good policies being practised by the company will continue to happen no matter if the boss retires or leaves or whatever. In effect, no person is bigger than the institution. The economic reward for that it translates to a better image, a better stock price... A better everything.

Women economists

Have women been successful as economists?

Though the economics profession has been dominated by men, many women have been successful as economists. One of the earliest is Joan Robinson, a pioneer of monetary economics as well as many other theories of economics. She once famously said, "The purpose of studying economics is not to acquire a set of ready-made answers to economic questions, but to learn how to avoid being deceived by economists." Other famous women economists include Anna J. Schwartz, a frequent collaborator of Milton Friedman. Anne Krueger was the First Deputy Managing Director of the International Monetary Fund from 2001 to 2006 and she was also the Chief Economist of the World Bank. She was also a professor at Stanford University. Laura Tyson was Chairperson of the President's Council of Economic Advisors from 1993 to 1995 during Bill Clinton's tenure. She later became the first female dean of the London Business School.

On a personal note, my women professors whose names are Margaret Bray and Janet Smith have been some of my best teachers.

(The author is Group Economist, Murugappa Group. The views expressed are personal. Send in your queries on economics to Whackonomics@gmail.com)

There is more information on women economists at http://www.cswep.org/ which the web site of "The Committee on the Status of Women in the Economics Profession." There is also a book, Distinguished Women Economists by Julianne and James Cicarelli for more information.

Sunil Rongala

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