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Indians control American companies – and laying off tech workers won’t stop them. Here’s why you have to believe the hype

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Another month, another announcement of an Indian takeover of a large company or university.

Next year, Laxman Narasimhan He will replace Howard Schultz as CEO Starbucks. In November, Sunil Kumar He was named the first person of color to become president of Tufts University. in October, Noreen Hassan He assumed the position of President of UBS Americas. earlier in July, Soumyanarayan Sampath He held the position of CEO of the company Verizon business and Jayathi Murthy She became president of Oregon State University—the first woman of color to hold the position.

The success of leaders of Indian descent in Silicon Valley has been well documented by the likes Vivek Waduwa and Annalee Saxenian. However, that extraordinary success has now spread from Wall Street to the White House – and everything in between.

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Several other well-known and well-capitalized companies led by Indians include Arista, BarclaysAnd the RhythmAnd the DeloitteAnd the fedexbend, GoDaddyAnd the hubspotAnd the Illuminamicron NetAppAnd the Palo Alto Networkspanera bread, Reckitt BenckiserAnd the StrikerAnd the Vertex PharmaceuticalsVimeo , VMWare , WayfairAnd the Western DigitalWorkday and ZScaler.

Overcoming adversity

Companies currently led or owned by Indians have a market capitalization of over 6 trillion dollarsjust over 10% of the total market capitalization of all listed companies Nasdaq. Some notable heavy hitters include AdobeAnd the the alphabetAnd the MicrosoftAnd the ibmAnd the NovartisAnd soon Starbucks. (we will miss you, Twitter.)

This does not include companies such as differenceharman international, Master Card Credit CardAnd the Match setAnd the PepsiCoHendi recently resigned after a long tenure as CEO. For perspective, that’s another $700 billion in market cap between those five. It would not be wrong to say that these leading companies achieved their best performance in modern history under the leadership of these leaders.

Indians in the United States have come a long way, surviving waves of exclusion and xenophobia such as California The Foreign Territories Act of 1913, the Asian Embargo Act of 1917, the Johnson Reed Act of 1924, and countless other racial indignities to control the fields of health care, hospitality, and technology.

Indians have been deported and denied entry to Canada and the United States for decades. The Immigration and Nationality Act of 1965 reopened the doors for Indians to immigrate to the US from Indian startup founders who didn’t get funded in the 1990s and 2000s, to startups that didn’t get funded unless they had an Indian co-founder – it was Radical change is fast. Today, it is “normal” to see another public company appoint one (or more) Indian executives to leadership positions, or to see an Indian startup grow at a multi-billion dollar valuation. Looking at Jyoti Bansal (Harness, $4 billion), Naval Ravikant (AngelList, $4 billion), or Payal Kadakia (ClassPass, $1 billion).

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Indians now The second largest immigrant group In the United States it is an oft-cited fact, that the household income of Indians is twice the average national income—an important measure of success in a capitalist economy. These achievements are significant because 75% of the 4.6 million Indians in the United States were born abroad. Of the 3 million foreign-born people who identify as Indian, 29% have been in the country less than five years – and 51% are non-US citizens.

Impact of technical layoffs on Indian immigrants

Why are these data points important? Your pursuit of happiness conflicts when your security needs are not being met. For example, recent tech layoffs might mean you pack up and go back to your “home” country.

In addition to other issues common to immigrants, such as not having a credit history, facing cultural and language barriers, and lack of family support, Indians also face severe immigration delays. On average, an Indian-born immigrant waited 13 years to get a green card, a much higher number than other immigrants. The situation has steadily worsened over the years. New estimates peg the number as high as 150 years old! This is not an exaggeration, just facts based on data from the US Citizenship and Immigration Services (USCIS).

The recent wave of tech layoffs has hit immigrants on H1-B work visas especially hard. In November alone, more than 42,000 technical employees lost their jobs. An estimated 30% of those laid off are work visa holders. People with H1-B must remain employed by a company that can sponsor their visas or leave the country during the 60-day grace period. Every year, a majority of 85,000 H1-B visas are issued to Indians. The majority of 75% of foreign-born Indians come as students and reside on an H1-B visa.

Layoffs will have a huge impact on society. Finding another job in this market will be difficult if not impossible. Traditional employers such as H1-B AmazonAnd Meta and Microsoft are working on a hiring freeze. The kind of startups that could absorb some of that talent have dried up the venture capital. The holiday season is a generally slow period in hiring. The United States has experienced a similar exodus of immigrants in the past – during the 2000 recession and 2010 recession.

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Why do Indians take over?

I’ve been curious about this for a long time. My PhD thesis on Indian migrant entrepreneurs and data from other studies show that education and family are the main drivers of the success story of Indians in the United States and elsewhere.

About 82% of Indians ages 25-55 in the United States are college graduates, compared to 42% of whites. About 94% of first-generation Indians are firmly married, compared to 66% of white Americans. The percentage of Indians born in the United States drops slightly to 87%, though it’s still well above average for other groups. The average annual household income of an Indian family is $141,000. For all-male households, it’s slightly higher at $148,000. For all-female households, the average drops significantly to $72,000. Shouldn’t all-male families get together and bring home $220,000? My math teacher would agree!

A large proportion of physicians in the United States are of Indian descent. However, lifestyle diseases of people of Indian descent, especially males, have been an ongoing concern. The data shows a significantly higher percentage of males of Indian descent with lifestyle-related conditions in every age group, except for those 65 and older. Census data also indicates that about 5% of Indians do not have health insurance. Extreme poverty and homelessness are a concern in the US-based Indian community, although the numbers are relatively low.

While Indians have clearly done well in healthcare, hospitality and technology, they are still not represented in many other sectors of the economy such as banking, finance, education, media, sports and policy making. Looking at some of the heavy hitters in the White House, like Vice President Kamala Harris, one could argue whether we really are “underrepresented” in politics. Yes we are.

Despite racism, xenophobia, and other “usual minority problems,” this one percent of the US population has made a huge impact and punched above its weight. We appreciate and value the pioneers and mavericks who set the tone for other Indians. The bamboo roof, or whatever was left of it, was blown away forever.

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The second generation of Indians born in the United States are expanding and venturing out at a faster rate. The daughter of an architect and a physician, Mindy Kaling has ventured into Hollywood and is one of the most prominent names in the industry. She is associated with major productions such as A wrinkle in timeAnd the I haven’t done it beforeAnd the Ocean 8And the Mindy ProjectAnd the the desk.

Rajesh and Rupesh Shah, both graduated from the Wharton School of Business and grew their parents’ tile and flooring business exponentially. Manu Shah told me How they, along with his wife Rica, started MSI in their basement in Fort Wayne, IN in 1975. Today, MSI is the largest supplier of premium surfaces in North America. As the largest importer of ceramic, granite, marble, and other materials from 36 countries, MSI employs more than 2,500 workers in the United States and has annual revenues of more than $2.5 billion.

Anand Gala He told me the story of how he got started working with his parents at Jack in the can Privilege when he was nine, standing on milk crates to access point-of-sale systems. Anand is now the co-founder and managing partner of Gala Capital Partners, LLC, a diversified holding and investment firm with interests in coffee, restaurant chains, franchising, software, technology, real estate development, and public equity investing. Gala owns and operates more than 500 locations across the United States

Tushar Patel tell me How he grew his parents’ humble business of small hotels into a multi-billion dollar investment group. The Tresadia group It has handled over $1 billion in hotel assets over the years and has over $2 billion in assets under management (AUM). Their portfolio companies diversify across biosciences, education, hospitality, pharmaceuticals and technology.

As second and third generations of Indians come of age, the unprecedented Indian grab for power is here to stay.

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Nitin Bajaj is the host Industry viewAnd the which focuses on the immigrant business and executive communities. Soon with the release of Season 8, it features several hundred success and failure stories. Nitin did his PhD on immigrant entrepreneurs and is the founder of the Antha Prerna Foundation, a 501c(3) nonprofit focused on improving access and visibility for immigrant and marginalized entrepreneurs.

The opinions expressed in Fortune.com articles. Comments are solely those of the authors and do not necessarily reflect the opinions or beliefs luck.

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Commuters from the Southwest threatened arrest at Christmas in a viral video

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Southwest Airlines He already had it Terrible end of the year After a massive winter storm forced it to cancel flights that had outsold its industry competitors. Then, somehow, the PR nightmare got worse.

At Nashville International Airport on Christmas Eve, a police officer threatened to arrest stranded Southwest passengers if they did not leave a secure area of ​​the airport. A video of the incident went viral on social media after it happened Posted by passenger to TikTok. Other videos circulating on social media also captured parts of the incident.

In the video, which has been viewed more than 910,000 times since it was posted two days ago, the officer warns passengers that they must leave the area or they will be “arrested for trespassing.”

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“Now,” he continued. “Everyone to the unsafe side. The ticket counter will help you answer any questions you have.”

Shelly Morrison, who was among the passengers with her three daughters, was queuing at the southwest gate hoping to get more information about what was going on with her flight, to me the Tennessee.

After she and others waited nearly an hour for an explanation, one of the workers announced via the intercom that she was leaving – and called security. Morrison told the local newspaper that he did not tell a passenger that they had to leave if they had a canceled ticket.

“The Southwest is calling us”

Soon, two police officers from the airport’s Department of Public Safety arrived at the scene, just as Morrison’s daughter, Amani Robinson, began recording a video.

An officer tells passengers in the video, “If you don’t have a ticket, you don’t have to be on the safe side.” To someone who said they had tickets, he replied, “Your tickets just got cancelled.”

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Morrison asked the officer again if he might be stopped, and he repeated to him: “If you don’t have a valid ticket and you’re on the safe side and you refuse to leave, you’ll be arrested… If your ticket’s canceled, they don’t have a ticket anymore. You understand that, right?”

He added, “Right now, Southwest is calling us because you guys are congregating here, and they’re trying to close that gate.”

The officer grew impatient when Morrison again tried to “establish a legal connection,” as she puts it in the video, and told him she was an attorney.

“Do you refuse to leave the safe side?” he asked clearly.

She replied, “No, I don’t refuse to leave.” “I ask for additional information. Can you mention the statue to me?”

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He replied, “It is the security of airports and planes.”

“Don’t you have a department?” she asked.

“I don’t need to give you the code. If you’re a lawyer, you can look it up.”

Morrison thanked him and went with the others to where he had indicated.

Southwest responds

when called luckA Southwest spokesperson said that employees “did not request that customers be escorted outside the gate area.” Instead, the company required “that local law enforcement be present at the gate to assist with crowd control efforts while our team works with customers.”

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A spokesperson for Nashville International Airport, also known by the airport code BNA, responded:

“The sheer number of flight cancellations over the past week has caused great stress for our passengers, and included an unfortunate incident involving a passenger, airline staff and an LNA officer. We are very sorry this happened and we take this situation very seriously. We are working with Southwest Airlines and our other airlines to promote better communication between team members so that every traveler enjoys the optimal experience at BNA:

luck She also contacted the Ministry of Transport regarding the airport incident, but did not receive any immediate response.

Southwest passengers trying alternative routes faced higher fares from other airlines, some of which — faced public backlash —Announce a price cap on the affected roads.

The Department of Transportation said this week it would open an investigation into Southwest Airlines. He. She he wrote in a tweet It was “concerned by Southwest’s unacceptable rate of cancellations, delays, and reports of a lack of prompt customer service. The department will study whether cancellations are manageable and whether Southwest is complying with its customer service plan.”

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This article has been updated with responses from Southwest Airlines and the airport.

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Why Trump didn’t want you to see his tax returns

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What was he hiding?

We’re finally starting to find out, now that the House Ways and Means Committee has released six years of Donald Trump’s personal and business tax returns. Trump’s returns are complex and it could take weeks for experts to realize whether Trump cheated or used overly aggressive tactics to lower his tax bill. The committee did not release any tax documents for some of Trump’s business entities, so puzzles may remain.

But a few things soon emerge from the assessment of the leading figures in Trump’s comeback. When Trump announced his candidacy for the presidency in 2015, he described himself as a builder and businessman who could go to Washington and fix what politicians had destroyed. Trump’s stated status was as a political outsider and business titan crucial elements in his appeal to voters.

But Trump’s tax returns suggest his businesses are always losing money, while raising questions about how he manages to fund a gilded lifestyle. In each of the six years from 2015 through 2020, DJT Holdings, one of Trump’s main business entities, lost millions of dollars. The smallest loss was $34 million in 2015. The largest loss was $64 million in 2016. Combined, these losses totaled $314 million from 2015 through 2020.

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This is not an entirely new revelation. Glimpses of Trump’s finances have long revealed that Trump is capitalizing heavily on losses incurred in one part of his business portfolio, to offset gains elsewhere and significantly reduce his tax bill. Documents leaked to the New York Times in 2016 showed that Trump declared a loss of $916 million in 1995. lowered his tax bills for nearly two decades. When Trump began earning millions from The Apprentice TV show in the 2000s, losses from faltering real estate ventures, such as his casinos in Atlantic City, helped keep his income tax payments down. These practices are generally legal, although some tax experts believe Trump could have expanded the legal boundaries.

Members of the US House of Representatives Ways and Means Committee move boxes of documents after a panel meeting to discuss former President Donald Trump’s tax returns on Capitol Hill in Washington, US, December 20, 2022. REUTERS/Jonathan Ernst

When Trump ran for president in 2016, he said he would release his tax returns once the IRS finished auditing them. Of course Trump never released any tax returns, and the IRS audit wouldn’t have stopped him from doing so in the first place. Ways and Means Committee Finally got Trump’s payout from the IRS on Dec. 20, after Trump lost a four-year legal battle to keep them secret. He found justices all the way up to the Supreme Court Congress had the right to see the proceedsbecause it can contribute to legislative activity.

[Follow Rick Newman on Twitter, sign up for his newsletter or sound off.]

If Trump had released his comeback in 2015 while running for president in 2016, journalists and political opponents would have been mired in what appears to be huge business and personal losses. His return to DJT Holdings shows total revenue of $25.1 million but a net loss of $34.1 million. It is reasonable for a company to incur losses greater than revenue, since tax code allows for carry-over losses from prior years. But it’s very bad looks to tell voters you’re a business owner while reporting large losses to the IRS.

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Trump and his wife Melania’s 2015 comeback undermines his commercial credibility. Trump’s adjusted gross income in 2015 was $31.8 million. In other words, he supposedly lost $31.8 million, because he was allowed to claim losses from his business against his personal income. His taxable income was $0 and he owed $0 in federal income tax. It is difficult for average workers who earn most of their income from work to declare passive income, unless they have capital losses or other types of losses beyond what they earn from their employer.

Hillary Clinton, Trump’s Democratic opponent, She released her tax return for 2015 on August 12, 2016. The report showed that she and her husband, Bill Clinton, had an adjusted gross income of $10.6 million, and paid $3.6 million in federal income tax, for an effective tax rate of 34%. While the return showed the Clintons wealthy, they claimed no mysterious tax breaks except for a small capital loss of $3,000. Trump was the nominee going after meat-and-potatoes voters in 2016, but Clinton’s taxes were more involved.

DJT Holdings reported business losses for each of the next five years, through 2020. In terms of Trump’s personal returns, his adjusted gross income has been negative for three years and positive for two years. Over the six years combined, those business losses have pushed Trump’s total adjusted income – $53.2 million, or a loss of $53.2 million. His taxable income was $0 for four out of six years.

Trump has hit one snag with regard to federal income tax payments — the alternative minimum tax, which raises the tax liability of some, mostly wealthy, depositors who use the deductions to significantly lower their taxable income. During four of those six years, the federal tax code started to push Trump’s federal tax bill. Including regular income tax and AMT payments, Trump appears to have paid about $4.1 million in federal income taxes from 2015 through 2020.

If voters had been able to see several years of Trump’s tax returns during the 2020 presidential election, it would have been clear that Trump’s corporations lose money every year and that Trump as an individual loses more money than he earns, overall. This isn’t really how it works. Trump has very few regular sources of income, such as millions of dollars in interest each year, and the capital gains that would come from the countless deals to license the Trump name. This income appears to be constant and recurring, while losses may occur in a particular year or two, but are spread across many years, for tax purposes.

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Trump has sometimes bragged about the low taxes he’s paid, saying he’s drastically undercutting his tax bill It makes him smart. Maybe so. It will be interesting to see if that makes him more or less electable.

Rick Newman is a senior columnist for Yahoo Finance. Follow him on Twitter at @tweet

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Chinese education files Ruanyun Edai to raise up to $35 million via US IPO (pending: RYET)

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Chinese education technology Ruanyun Edai Technology (Rhett) Apply to raise up to $35 million through an initial public offering in the United States.

Ruanyun said in file that she was considering offering 5 million common shares at between $5 and $6 a share, which might happen

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