Dear Mr. Sunder Rajan,
Mr. Nathrao has already said, "No clause in an appointment letter can ensure or compel him to be devoted."
It appears that you are looking at the senior position with a bit of skepticism. You seem to doubt whether you have given him sufficient work to keep him engaged for 'X' hours per day. These reservations are okay for lower levels but not for higher levels.
You need to view top management personnel differently. They are institutions in themselves. They are knowledge houses. They also have contacts in their industry to gain insight into what's happening in the market.
Industry and Position Considerations
What is the nature of your industry? Is this position at the level of CEO or any other C-level? What challenges is your industry facing in general and your company in particular? Taking the case of two top-notch IT companies, Infosys and Wipro, though both are from the same industry, their challenges are different. For Mr. Vishal Sikka of Infosys, it would take about five years to turn around the company. Success comes with patience, and you cannot breathe down the neck of a senior position for quarterly results. Yes, quarterly results are important. Shareholders are not interested in what strategy senior management personnel adopt, but still, when a newcomer comes on board, he/she needs to be given time.
Evaluating Senior-Level Performance
Whether a senior-level position has utilized "time, energy, knowledge, creativity, and experience for the benefit of the organization" or not will be decided by the results. Therefore, what KRAs have you given to this position? Are your expectations realistic, or do you expect this person to reach for the moon?
Appointment Letter Suggestions
Regarding the Appointment Letter, you may use the standard appointment letter but mention the agreed perks for this position. Nevertheless, the MD may provide a separate KRA sheet and take a signature on the duplicate copy. However, including wording to the effect that "you will use time, energy, knowledge, creativity, and experience for the benefit of the organization" would be too crude and immature.
Thanks,
Dinesh Divekar
Bangalore - 560092