The number of CEOs/CXOs in the million-dollar salary bracket (over Rs 7.4 crore) declined from 150 a year ago to 125 in 2020-21, while the average salary increased by more than 21% to Rs 20.4 crore (Rs 16.8 crore). done. FY20).
The total compensation earned by 125 top executives grew just 1.4% to Rs 2,549 crore in 2020-21, according to TOI’s “Million-Dollar Salary” study conducted by EMA Partners. The study is based on the annual reports of BSE 200 companies. Based on previous studies by TOI, the growth in total compensation has slowed down since FY19, when it jumped from around 14% to around 2% in FY20. However, the average salary has increased. In FY20, the average wage growth was muted at 0.4%, while it declined by 3% in FY19.
One reason for the shrinking of the elite club is the weakening of the rupee against the dollar. The rupee has depreciated nearly 6% against the dollar a year ago, to over Rs 73 for the fiscal year ended 2011. To calculate the million-dollar salary, the rupee was taken at $74. It set an annual compensation of Rs 7.4 crore as the cutoff for joining the “million-dollar salary club”. In FY20, the rupee stood at 70 against the dollar, when the elite club had 150 members.
The club of professional CXOs at 68 is led by promoters at 57. The gap between the increase in compensation earned by promoter CXOs and professional CXOs has also widened. In the year under review, while professional CXOs saw a 6.4% increase in compensation, promoter CXOs took a hit as their total compensation declined by 2.3% in FY2011. Among the promoter CEOs, Sun TV’s Kaveri and Kalanidhi Maran top the list this year with each being compensated around Rs 88 crore. Sajjan Jindal is back in the top 10 with a compensation of Rs 73 crore, which includes profit linked commission of Rs 60 crore.
K Sudarshan, MD, EMA Partners India, said, “Despite the pandemic spreading during 2020-21, most businesses have bounced back smartly and companies posted impressive numbers. We have seen depressed costs. As a result, we have not seen any significant change in CEO compensation, which has seen a slight increase over the past year. who are now earning top-dollar compensation in line with their global peers.”
Some of the executives who retired and dropped out of the club are Aditya Puri, former MD of HDFC Bank and former MD and CEO of Asian Paints. KBS Anand, New entrants to the club include Thierry Delaporte, who took over as CEO of Wipro in 2020 with a compensation of Rs 64 crore, which takes him straight into the top 10; Pratik Pota Jubilant Foodworks (Rs 12 crore); Sunil D’Souza of Tata Consumer Products (Rs 10 crore); and Cipla’s Samina Hamid (Rs 8 crore). Some, like Salil Parekh of Infosys, have made it to the top 10 with a 45% hike in compensation to around Rs 50 crore as it includes stock options worth Rs 31 crore during the year.
Sudarshan said he expects the list to be dominated by a growing number of professional managers, even as practical business promoter managers continue to operate at the scale of their businesses. ,shareholders And watchdogs are watching CEO compensation more closely than ever before. Sudarshan said, the boards will act with due diligence and keeping in mind the overall interest of the shareholder and the performance of CEOs in the listed businesses will be scrutinised.
In the million-dollar salary club, 28 are from the CXO pharmaceuticals sector; 19 are from industrial/manufacturing (down from 33 a year ago); 16 are from Miscellaneous Group, 14 are from Automotive (down from 17), 13 are from Financial Services, 10 are from Consumer/FMCG and 10 are from IT/ITE.
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