When I started my career, Rajat Gupta was an icon. Indian Gen X wanted to achieve his heights. He made us realize that Indian professionals can compete in the global arena and win. Now with his name tarnished with insider trading charges, every professional would be thinking – we don’t want to follow his path. The fall is always the hardest from the top floor of the building, not the ground floor. Whatever he built in his lifetime, today lies in shambles. His family is going to pay a heavy price for his wrong-doing. He has from being a case study on “what to do to fulfill your career dream” has become a study for “what not to do in your career”. I feel sad to say this, but here are some lessons all of us can learn from his downfall.
1. Poverty is in the mind and not in the bank balance - JP Morgan Chase estimated Gupta’s net-worth as US $ 130 million but as Rajaratnam joked – “Gupta wanted to be in the billionaires club“. Gupta’s greed got him down as he was unable to draw the line for his wants.
2. Don’t break the rules to get ahead - Gupta as ex-head of McKinsey knew he was duty bound to maintain confidentiality of boardroom information. He traded confidential information to meet his own personal targets. A McKinsey executive said - “It is mind-blowing that the guy who ran the firm for so many years could be going to jail for violating that principle.”
3. Choose friends carefully - That’s what parents say to kids but we forget it in our adult life. Gupta befriended Rajaratnam, and though one cannot say he lacked judgment, he did manage to rationalize wrong-doing to keep the friendship alive. He got enamored by the Rajaratnam’s lifestyle. Relationship with Rajaratnam, who had a dubious reputation, led him astray.
4. Keep feet firmly on the ground – Ideas of invincibility and grandiosity lead to delusional thinking. Rajat Gupta was fined by SEC for insider trading. Instead of paying the fine, he chose to pursue the case legally. With the indictment, he is facing over 10 years of prison sentence. He took the decision to challenge SEC due to over-confidence and arrogance.
5. Correct wrong-doing immediately – A person walking an unethical path rationalizes that s/he will get away with it, if they aren’t caught the first time. Gupta after doing insider trading for a few times got comfortable in his role. Mr. Naftalis said -“Having lived a lifetime of honesty and integrity, he didn’t turn into a criminal in the seventh decade of an otherwise praiseworthy life.” Gupta lost his principles over a time. He didn’t stop when he should have and didn’t take any corrective actions.
6. No one is above law – With the well-known figures in India and international arena facing trails and convictions, it is apparent that no one can escape the hands of justice. Sooner or later, the path will lead to a prison sentence. Being ethical pays in the long-run by keeping a person safe.
7. Protect your legacy – Rajat Gupta had an impeccable reputation of a world-class professional and a great humanitarian. His list of good deeds is long and was known as an exemplary citizen of the world. With these charges, he leaves a legacy of a criminal. A journey from the boardrooms to a prison cell. There can’t be a greater tragedy on the professional field.
It is heartbreaking to find that our heroes have feet of clay. Gupta traded a comfortable old age with a prison cell for satisfying his insatiable hunger for power and money. An extremely intelligent man, an alumni of IIT and Harvard, failed to make the right ethical choices. In the end, Robert Gilbert’s quote comes to mind -
“Conquer your bad habits or they will conquer you.”