UTI to give itself a new corporate identity
By Mumbai: | 23 Jul 2002
While
executive directors continue to be called EDs, chief general
managers have been redesignated as presidents. The change
in the designation came into force from 1 July 2002 onwards.
Under the new dispensation, assistant general managers
have now been called assistant vice-presidents and deputy
general managers are called vice-presidents. General
managers have been redesignated as senior vice-presidents.
Say senior UTI officials: These changes have been done as a corporate restructuring exercise to bring the trust in line with other private sector mutual funds. R Rangarajan, who is in charge of all debt schemes, and A K Shridhar, who is in charge of all equity schemes, have been promoted from the general manager level to the chief general manager level. Thus, they will now be called presidents.
UTI
is also working to change its logo to make it look modern
and contemporary. The new logo, getting developed by
Rediffusion DY&R, will be launched soon. Linopinion,
the public relations arm of Lowe Lintas Advertising, will
oversee the launch. The agency is reportedly conducting
a market research to gauge public reaction to the change.
The objective is to put up a new face for UTI. Traditionally,
the organisation is perceived to be a government-run body,
which triggers a different expectation level from investors.
Now it will look modern and contemporary, says a UTI
official.
As part of its human resource development exercise, UTI had slashed the retirement age from 60 to 58 and increased the working hours for its officers sometime back. It also cut the number of holidays for its executives. It recently introduced an incentive-linked compensation package, which enables a competent fund manager to earn much more than his actual salary.
The central government, meanwhile, is planning to provide compensation for losses in different schemes of UTI to its new sponsors under the proposed restructuring plan. A senior finance ministry official says the step is aimed at providing incentives to the new sponsors of UTI for joining the new set-up. Considering the current health of the trust, creation of a new sponsoring company will be very difficult in the absence of any incentive.
The issue has already been discussed with Finance Minister Jaswant Singh and a final decision on the mode of compensation for losses in different UTI schemes is expected to be concretised in consultation with concerned parties. The mutual fund behemoth is currently facing major shortfalls in the assured-return monthly income plans.
