markets incessant rise has encouraged companies to raise funds
from the public
money, will spend seems to be the motto of the elite
BUT NOT MARKET MOVERS
ones who did not have to tap the market to get the numbers
definitive list of India Incs richest
of the best paymasters
we estimated wealth and earnings of billionaires
Check on pay
got the biggest raises? Which company was the most generous? Deepak
Korgaonkar and Prasad Sangameshwaran
month, Jeffrey Immelt, chairman of General Electric, unwittingly
opened a fresh debate on a thorny issue for corporate America
CEO compensation. Immelt said that paying chief executives wildly
more than their senior managers was "lunacy".
Inc would take a while to qualify for Immelts definition
of lunacy, but its catching up fast. The creamy layer
executive directors and above rewarded themselves
with a 32 per cent pay hike in 2006-07. In fact, 51 companies
gave a salary hike of 40 per cent to its top-tier employees.
the salaries of other employees in these companies increased
by only 22 per cent. Overall, the compensation package (salary,
commissions and perquisites) of 104 senior executives has
more than doubled and a further 82 executives got pay hikes
between 50 per cent and 100 per cent.
number of senior executives earning more than Rs 1 crore annually
increased to 576 from 442 in 2005-06. And the Rs 2 crore list
almost doubled from 116 to 228.
GOEL, chairman and managing director of Omaxe,
is among the new entrants in the crorepati list with a salary
of Rs 2.55 crore
these 576 executives took home Rs 1,447 crore from salaries, commissions
and perquisites (excluding stock options and deferred pay) in 2006-07
compared with Rs 996 crore the year before.
course, the list could be much longer some HR consultants
say it would more than double to somewhere between 1,000 and 1,100
people if you include senior executives from unlisted companies,
including the big international firms, management consultancies
and foreign banks, investment bankers, unlisted retail billionaires
and sundry others. Consultants estimate that the top salaries in
sectors like retail and management consulting would be between Rs
5 crore and Rs 7 crore.
number of senior executives earning more than Rs
1 crore annually has risen from 442
companies are finding it more and more acceptable that top compensation
is there for the taking, says R Suresh, managing director,
Stanton Chase (India), a global executive search firm. According
to him, the norm is that if a company earns more than $ 1 billion
( Rs 4,000 crore) in revenues it can pay an annual compensation
of $ 1 million (Rs 4 crore) to its CEO.
the company has revenues of Rs 1,000-4,000 crore, the CEO compensation
can be to the tune of Rs 2 crore, while those companies having a
turnover up to Rs 1,000 crore can give their CEOs an annual salary
of Rs 1 crore. Given this benchmark, the gross salary of only 13
executives was above Rs 10 crore. The catch: mostly all of them
belonged to the promoter families of their businesses.
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