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Show Me the Money ? Wages in Private Equity (PE) vs. Non-Private Equity Backed Companies in India

“Show me the Money” is  a popular phrase from the movie Jerry Maguire (1996). There is a myth among professionals in India that startups, venture and private equity backed companies don’t pay well. That may be the case with bootstrapped startups (of course, due to limited resources), however, on the contrary venture and private equity companies pay competitively and of course if you are a superjock, companies are likely to throw in those sweeteners’ stock warrants and options.

Private Equity Impact 2011 is a report compiled by Venture Intelligence and Professor Amit Bubna of ISB. This report outlines the impact of private equity on every facets of business- efficiency to governance. It also shows the impact on wages and its growth rate for PE backed companies. In the past 3 years, PE and VCs have invested over $22.6 billion. Venture and PE backed companies have positively impacted in the following areas.

  • Efficiency in business processes
  • Scalability
  • Positive impact on top and bottom line
  • Access to more capital ? loans at favorable rates from financial institutions, equity markets
  • Improved governance [important] etc

How does it relate to Wages?

Wages at PE backed companies are significantly higher.

Source: Venture Intelligence
Source: Venture Intelligence

For more information, you can download the report at http://ventureintelligence.in/peimpact.htm

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