Vembu Vaidyanathan
Indian CEO is giving away hundreds of thousands of euros to employees – not for the first time
Vembu Vaidyanathan is CEO of IDFC First Bank
© IDFC First Bank
Vembu Vaidyanathan, head of an Indian bank, wants to share his wealth. Therefore, he gives away shares in the company to employees. Previously, he had already generously considered his former teacher.
Vembu Vaidyanathan is CEO of India’s IDFC First Bank, which was formed through a merger of Capital First, a financial institution he founded, with a bank. Capital First focused on providing small business owners and ordinary consumers with smaller loans to enable them to invest. Apparently, Vaidyanathan also follows this principle with his private possessions.
As “Bloomberg” reports, the Indian gave away 3.7 percent of his shares in the company to employees. The shares are worth the equivalent of more than 470,000 euros. The beneficiaries of the generous gesture were Vaidyanathan’s chauffeur, his fitness trainer, office workers and other bank employees.
Indian bank boss wants to show employees appreciation
It is not the first time that the 54-year-old, who is considered to be rather media-shy in India, has been so generous. He has given away 38 percent of his shares since 2018. At that time he gave away shares worth more than 100,000 euros to his chambermaids and drivers and their families. Immediately prior to the major merger with a bank, Vaidyanathan was keen to “thank and honor those who have brought the company to this strong position,” Capital First said at the time.
The employees said they supported Vaidyanathan in an economically difficult situation and sometimes even gave up other well-paid jobs to work with him. Some of the employees who received shares would no longer work for the company, “but their contribution has not been forgotten”. The company said in a statement at the time that the donations were pure generosity and philanthropy, and not an attempt to save on taxes.
Gift for the former math teacher
In 2020, Vaidyanathan gave his former math teacher shares worth €36,000 because he had lent him money when he was a student. At the time, the current CEO had the opportunity to get a place at an elite school, but could not afford to travel to the admissions interview. Vaidyanathan had been looking for his teacher for 30 years to say thank you. In addition, the Harvard graduate donates large sums to charitable organizations.
Swell:“Bloomberg” / “quartz” / “BusinessToday”