Preach What You Practice: Senior Corporate Executives Can Now Become IIM Directors As Per New Act

Executives who have worked in senior management roles for 15 years in the corporate world can occupy the top positions in Indian Institutes of Management (IIM) as per new rules framed under the IIM Act, Indian Express has reported.

Till the enactment of IIM Act, there were no fixed rules for the recruitment of IIM directors. But teaching experience and PhD were considered to be mandatory for appointment as director.

Though executives have worked as directors of IIMs in the past ( Ravi J Matthai and Subir Chowdhury), these cases have been rare. “The examples of executives heading IIMs are mostly from the early days when the institutes were young, and the talent pool was limited”, one of the IIM Directors told Indian Express.

Higher Education Secretary R Subrahmanyam has justified the move to open up the position for senior executives from the private sector. The secretary said that the institute prepared students for management roles. “Someone who has been an Executive Director or Managing Director can prove to be invaluable to an IIM,” he said.

When questioned about academic credentials, he defended the government’s rules by stating that people with limited academic credentials have set up many big businesses and institutions. However, directors of IIM Ahmedabad and IIM Bangalore have expressed apprehension over this move.