Mr. M R Venkatesh covers Indian family values, savings economy, American sub-prime crisis, Saddam's hanging all in one interesting, funny and thought provoking lecture on Dollar crisis.

Thinovation

Apple has introduced the ultra portable, ultra thin notebook - Mac Book Air.

Surprisingly, it is nicely loaded for its ultra thin size.

I wish it came with embedded WiMAX chip. This would have helped in easy internet access using WiMAX networks where WiMAX coverage is available. We can expect many WiMAX networks to pop up all over the world - at least according to WiMAX forum.

Asus has announced EeePC product line with embedded WiMAX chips in collaboration with Intel.

Pay Right

In recent times, we have seen excessive pays for CEOs that is not in line with the company performance.

But it is time to acknowledge and credit the Amex (AXP) Board and CEO Ken Chenault for agreeing to this structure.

Even more striking are the extraordinarily high hurdles the board requires Chenault to clear if he's to get any of those options. To receive the full grant, he must beat several goals over the next six years, an unusually distant time horizon. AmEx's earnings per share must grow at least 15% a year on average, revenues must grow at least 10% a year, return on equity must average at least 36% per year, and total return to shareholders must beat the S&P 500 average by at least 2.5% a year. Chenault can receive a fraction of the grant for lesser performance, but below certain limits, which are still quite high, he gets nothing.

Now consider a couple of scenarios. Chenault misses all the targets but the market booms, returning 10% a year, and AmEx stock matches it. After their full term of ten years, his options would be in the money by $258 million - but he wouldn't get any of that. Why? Well, AmEx's stock presumably rode a rising tide, and his shareholders could have done just as well with an index fund while exposed to less risk. Alternatively, the market returns just 6% a year, in line with what many experts predict, but under Chenault's leadership AmEx hits all the targets and the stock returns 9% a year. Chenault collects a pretax gain of $222 million after a decade - an awful lot, but his shareholders are $35 billion richer than if they had chosen an index fund, and he's a hero.

Let us hope many more corporate leaders follow his example.