Ahmedabad, Dec. 25: If the Centre keeps sitting on the IIMs’ demand for financial autonomy, the B-schools’ faculty shortage could worsen, a senior Indian Institute of Management official argued today.

The official, who wouldn’t be quoted, said several IIM Ahmedabad teachers had received job offers from private institutes at salaries three to four times higher.

Unless the Centre grants the premier B-schools financial autonomy, he argued, they cannot make their salaries competitive with those at private institutes.

“The threat of poaching is real. Although only one professor has resigned this year, at least 12 senior faculty members, including two department heads, have been approached. At least half are seriously considering the offers and might quit in a few months,” the official said.

“If something is not done immediately, the country’s premier B-school, already facing a faculty shortage, will find it very difficulty to attract and retain good teachers.”

A professor’s monthly pay at IIM Ahmedabad is less than Rs 50,000. If he joins, say, the Indian School of Business, Hyderabad, his salary would rise to Rs 1.75-2.25 lakh. The Amity School of Business Management and S.P. Jain School of Business Management Sciences offer salaries comparable with ISB’s.

About two years ago, the IIM directors had sent a proposal to the Centre for hiking salaries which, according to IIM Ahmedabad chairman N.R. Narayana Murthy, are “very low”. The Centre is yet to make up its mind.

For the teachers, an added incentive to join the private institutes would be the chance to earn more by handling private projects and consultancies on the side. The opportunity is limited at the IIMs.

For extra classes, the private B-schools pay teachers Rs 10,000 to Rs 12,000 per hour while the figure is Rs 3,000 at IIM Ahmedabad.

So far, IIM Ahmedabad has been able to retain its faculty because of its “brand value”. “It’s still India’s top B-school where faculty get to teach some of the country’s brightest students,” institute spokesman Ashok Shah said.

The Centre doesn’t seem to agree at the moment, but the only long-term solution is the government loosening its grip over the premier institutes, another IIM official said.

He was hopeful, because “over a period of time the most logical thing happens”.

Until then, no one can halt an exodus, he said. “Our faculty are employable not only at private management schools in India — even the world’s top B-schools would love to have them. And they would go.”