Asking for a pay raise – a few thoughts on Indra Nooyi’s remark in the New York Times Magazine

There is a reason why mystics and wise folks keep quiet after reaching a certain state. The reason is simple: anything they say can be easily misconstrued, or distorted, or interpreted through the narrow and self-serving needs of their listeners. In the last few days, Indra Nooyi, one of the most powerful women in the world and a commanding voice on parity at work and diversity, is under the spotlight for having said during an interview that nobody should ever ask for a pay raise and that she has always “cringed” from asking for one throughout her illustrious career. These interviews are happening as part of the roadshow for her new autobiography, “My full life”. I have already written about the book in an earlier essay. The book has so many brilliant nuggets of wisdom and advice strewn across its pages. Only at one or two places, she casually mentions her pay, how it was always a little lower than that of male counterparts, and which changed only when she took over as the CEO. Indra has always been a strong advocate of equal pay, not in the sense of fighting for it, but getting it as a matter of talent, aptitude, and performance. Her remark about not asking for pay is rooted in her culture, her attitude to work, and supreme confidence in her skills. To misconstrue that to be a judgment on those who actively seek salary hikes, or reading her remark as a gender-based comment, is merely making a mockery of her life and work so far.

Now, what exactly did Indra Nooyi say that has led to raised eyebrows and criticisms. In an interview with the New York Times magazine, Indra said, “I’ve never, ever, ever asked for a raise. I find it cringeworthy. I cannot imagine working for somebody and saying my pay is not enough. She later clarified that she spoke for herself only, and did not mean to generalize the issue. Importantly, she said not asking for more money is a cultural trait, deeply embedded within her, and therefore she could imagine asking for a hike. Indra said, as an immigrant to the USA, there was a natural inhibition to ask for anything, and the power to negotiate salary was even lesser. All these points are worth discussing.

Let’s take a look at the cultural trait first. In deeply conservative Brahmin families, the emphasis is always on the acquisition of knowledge. Education is primary. For millennia, the Brahmin community has been the lamp of wisdom in their respective communities. This has had both positive and negative repercussions, depending on the time and age in the history of Indian civilization. Even today in South India, there are predominantly brahmin enclaves where most doctors, lawyers, and families with a rich academic track record going back generations, reside. Children from such Brahmin households are taught that education is everything in life and that financial well-being is an offshoot of a well-educated mind and not to be sought after. This cultural indoctrination makes it very difficult for people for traditional brahmin families to ask an employer for more money. It is a psychological block, and more often than not, the person decides to keep quiet and not pursue the matter of money any more. Indra was brought up in such a traditional household, where money wasn’t in abundance, but at the same time, the issue of finance was never openly discussed or prioritized, or focussed upon. The focus was always on making oneself intellectually ready. Both Indra and her sister Chandrika were given the best of education, not so much as a means to make money but because it is in the brahmin culture to value education for its own sake. Just as the Gujarati’s are natural entrepreneurs and Marwadi’s and Sindhi’s are natural businessmen, the brahmins are naturally inclined towards the intellectual, and asking for money doesn’t come easily. There is reluctance in doing so, not because of fear or insecurity, but because the deeply ingrained cultural traits make one hesitant to do so. Having said that, during her last year as CEO, Indra was given a compensation of thirty-three million dollars, which is a giant amount; but the irony is, of the CEOs at the same level and scale, Indra was nowhere close to what others earned. But Indra didn’t mind. She believed she was compensated adequately and equitably. There is nothing wrong with that attitude, I suppose. And that was her point. You got to find that balance within, else quit and seek more remunerative opportunities.

In an interview with the Washington Post, a few days later, Indra said “When I was starting to work in the U.S., I was an immigrant woman. I was the only one of a kind, and I was just happy to be in the room”. This is a feeling that many who come to the US or any other developed country, face. There is an overwhelming relief that we are privileged to be in the same room as my native employers, and we must do all we can to adjust and adapt. When Indra came to the US to study at Yale and later continued working here, it was just an extraordinary thing for Indian women, especially a brahmin girl to do. Indra describes the circumstances elegantly in her book. What Indra possessed were skills, confidence and dynamism, and the belief that her work will be recognized and rewarded by her employers. The question of negotiating for a higher salary would not have even risen in her mind. Even today, thousands of young immigrants who come flock to the US on work visas keep a low profile. They do what they are asked to do by their employers, and in many cases are not paid at par with others in similar roles, or the market value of their skills. That is the reality. But most of them keep quiet until they get their green cards, which then significantly increases the power to negotiate. Being an immigrant imposes certain limitations on the psyche, and in cases like Indra’s where one’s cultural upbringing makes one hesitant to ask for a pay rise, the limitations are exacerbated, and all that one can do is perform well and better and hope that the work is recognized. In Indra’s case, her work was recognized by everyone she worked with, and she was spared the need to ask for anything, It came to her. But that does not mean, everyone else should keep quiet. Indra was only speaking for herself when she said she had never explicitly asked for a pay hike. But lesser mortals have to.

Third: knowing Indra’s track record on the need for equality and gender parity, it is sad that a spontaneous remark made during an interview was blown out of proportion. What is the right amount of money is a personal matter. Salary is a nebulous thing in a work environment. Is it a trigger for performance, or is it a prerequisite for performance? Is compensation only measured in salary value, or are there other factors that can weigh in? These are debatable issues, and there is no doubt that pay grades cannot be partial. In Indra’s case, the more she refined, learned and mastered her skills, the better her performance and contribution became, which, in turn, caught the attention of people who mattered and the pay hikes happened. One may argue against this line of thinking — if you don’t ask, you don’t get! That’s also true. If one is sure of his or her skills and contribution, and still needs to ask for hikes, then Indra clarified, it is best to assess if the current employer is indeed the right one for you. There is no obligation for good talent to work in the wrong place.

Lastly, Indra’s remark had a more subtle meaning. That an employee has to regularly ask for a raise may be an indication that there is something strained about the relationship. If the employee is laboring hard at his work with a sense of being underpaid constantly nagging him, there is loss at both ends. Neither does the employer benefit from such a state of mind, nor the employee. In such a case, one must reassess if such terms of employment are worth it at all. Indra retired as the CEO of one of the largest companies in the world. Can we equate her experience with all others? The answer is a clear NO. For most of us, only by asking for more, we are likely to get us close to what we want, financially. Indra has always been vocal about equal pay and recognition of talent at the workplace. There is no way she could have meant what the media made her remark to sound. Speaking for herself, she was right, she never had to ask anyone for a hike. She got what she deserved by the sheer strength of education, ability and performance. If at all, there is a general message in her remark it is this: make yourself so capable and demonstrate the capability, so that you don’t have to ask for anything, it shall come.

God bless…

Yours in mortality,

Bala