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
companies in India would like to retain their top talent, as growth
is their predominant concern. That probably explains the compensation
packages, says Sadeesh Raghavan, managing partner, India domestic
business, Accenture. That loyalty has its rewards is probably true
in the Indian context.
38 of the 576 executives from the listed companies had joined
their jobs in the last one year. And of the 134 new entrants
in the crorepati list, only 28 were from newly-listed companies.
the new entrants were Rajiv Singh, vice chairman of DLF (Rs
7.92 crore), Ravinder Jain, managing director of Panacea Biotec
(Rs 6.69 crore), J C Sharma, managing director of Sobha Developers
(Rs 5.14 crore), T C Goyal, managing director, DLF (Rs 4.56
crore), P N C Menon, chairman, Sobha Developers (Rs 3.26 crore)
and Rohtas Goel, chairman and managing director of Omaxe (Rs
DLFs vice chairman, gets a pay packet of Rs 7.92
sectors paid executives well? Fifty of the crorepati executives
belonged to pharmaceuticals, followed by 44 from information technology,
41 from construction, 29 from textiles, 22 from steel, 21 from hotel,
20 from automobiles, 19 from auto-ancillaries, 14 from engineering
and 13 each from banking, cement and personal care products. Point
to note: just one sector infotech belonged to the new economy.
But that does not mean new economy does not pay its executives well,
companies in sunrise sectors such as consulting, luxury retail,
telecom and real estate are not listed. If you include unlisted
companies, the number of crorepati executives could well be around
500 executives. In the top five telecom companies, for instance,
more than 20 executives earn more than Rs 1 crore.
year there are spikes in compensation because of new boom
areas. This year its fashion and luxury retail,
Suresh says, adding that listed companies are not necessarily
a microcosm of what happens in the corporate world.
Reliance Industries Chairman and MD Mukesh Ambani continued
to lead the pack of highly paid executives. With an annual
package of Rs 30.46 crore in 2006-07, his pay was up by about
25 per cent from Rs 24.51 crore in the previous financial
share of salary as an element of the overall compensation
plan is dwindling, says Suresh. He says that the other
forms of compensation such as perquisites, variable performance
bonus, long-term wealth creation plans (deferred bonus), share
of the profits and stock options are increasingly gaining
executive vice chairman, Ranbaxy Laboratories, is one of the
few professionals who makes it to the top 60
in Ambanis case, salary and perquisites formed only Rs 1.08
crore of his annual package. He received Rs 29.06 crore as commission.
If you include stock options, the pay packets could be even more
staggering. A Business Standard study earlier this year indicated
that top executives in 40 leading companies have received Rs 12,000
crore worth of equity shares under employee stock options till March
2006. That could put top executives in another league altogether.
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