Billionaire Michael Milken had earlier said he would buy shares in the company if it replaced the American CEO with an Indian-born one.
Indian-origin tech leader Didi (Debargya Das) shared what billionaire Michael Milken said about Indian-origin CEOs replacing US-born CEOs in US companies and presented the results of this, sparking a huge debate on social media.
Milken had previously said that if a US company replaced its US-born CEO with a CEO born in India, he would buy the stock. Das said he retested the idea. “In the last 15 years, this would have multiplied your money 50x: 7.5x more $$ and >2x IRR vs. S&P500: 30% vs. 14%!” Das concluded.Since the finding sparked debate about the leadership of Indian-origin tech companies, Das said it was just a correlation he observed and does not prove that stocks rose because of leaders of Indian origin.The responses to this post were mixed with many claiming that it was just a coincidence and one should look at companies founded by tech leaders of Indian origin as well.
“The Indian-born/immigrant CEOs who end up running major US companies are usually people who have had to overcome crazy odds at every stage: school, jobs, immigration, promotions, all of it,” one wrote. “This vision is very simple: If America continues to let in the best people from everywhere, then corporate America wins.”
Another wrote: “The first thing they start doing is cutting jobs in the US and offshoring or automating them. That’s good for the company, but this has been going on for 50 years now. How long will this be allowed to happen before companies realize that when Americans don’t have money, they don’t buy anything.”A third user wrote: “The stock price didn’t go up through innovation, it went up because they laid off workers en masse, outsourced and cut wages. It’s been two decades now. All these companies are producing waste and dying from their inefficiency.”Another wrote: “Now companies are started by Indians. Not companies with a monopoly created by the previous CEO. Said companies can be run by apes once they reach the size where these CEOs took over.”
