not just business owners who rake in tonnes of money, they
employ people who earn it as well. Indian managers are inching
up the ladder as far as salary packages and hikes go, write
Korgaonkar & Gayatri Ramanathan.
a fresher from IIMB can grab a salary of $193,000, is it
any surprise that close to 250 India Inc head honchos took
home a salary of more than a crore. As corporate India registered
a net profit of Rs 1.25 lakh crore in 2004-05, it comes
as no surprise that its top managers netted a cool Rs 1000
crore in salaries and perks in 2004-05. Correspondingly,
the number of crorepati CEOs too went up from 162 last year
to 267 this year, while their total remunerations went up
to Rs 622 crore from Rs 385 crore.
yet, compared to global averages, Indian top management
has much ground to cover. While Indian managers salaries
and perks barely touch 2 per cent of the companys
net profits, worldwide, top managers take home much higher
percentage of net profits, than Indians.
that may change soon, if we go by the latest Hewitt survey
on salary projections for 2006. According to the survey,
India leads the pack for the second consecutive year with
hike in salaries across the board, topping other Asia-Pacific
nations like China and Singapore.
new CEOs have joined the crorepati club this year.
Gross remuneration for 35 CEOs more than doubled in
2004-05, while 37 netted a 50-100 per cent hike
promoter-managers still lead the pack with 92 promoters
of 44 companies pocketing Rs 282 crore (up 36.5 per cent
over Rs 206 crore in 2003-04), professional managers are
catching up fast. The 129 professional managers of 78 companies
received Rs 253 crore in 2004-05, up 41.6 per cent over
Rs 178 crore in 2003-04. (For 38 companies, the data on
CEOs is not available).
new CEOs have joined the crorepati club this year. In 2002-03,
a total of 96 CEOs drew a salary of over Rs 1 crore, while
five years ago the number was just 41. Gross remuneration
for 35 CEOs more than doubled in 2004-05, while 37 netted
a 50-100 per cent hike. Total remunerations include salary,
allowances, perquisites and performance pay, including commissions.
average age of the professional CEOs is 53 years.
Of these, 51 are below 50 years. Fifty CEOs are between
50 and 60 years of age and the remaining 28 are senior
citizens between 61 and 82 years.
be sure, Ekta Kapoor, who at 29 is the youngest in
the club, saw her package go up from Rs 1.13 crore
last year to Rs 1.68 crore. Brij Mohan Munjal at 81
and chairman of Usha Martin M L Bharatiya at 76 are
the pack are the Ambani brothers, Mukesh and Anil,
who top the list of promoters and non-promoter executives,
with a compensation package of Rs 21.70 crore each
in 2004-05. This is an increase of 87 per cent over
the Rs 11.62 crore the duo earned in 2003-04.
years top-earning head honcho, Brij Mohan Munjal
of Hero Honda Motors, slipped to a fairly distant
second at Rs 13.40 crore, though his package went
up 14 per cent from last years Rs 11.71 crore.
Honda Motors also hogs the next three spots, with
Pawan Munjal at Rs 13.15 crore (up from Rs 11.53 crore),
followed by joint managing director Akio Kazusa (up
from Rs 11.36 crore) and full time director Shinichi
Nakayama (up from Rs 10.13 crore) at Rs 13.01 crore
list of those earning over Rs 10 crore in remuneration
also includes, Hemendra Kothari of DSP Merrill Lynch
who comes in at number six with a package of Rs 7.09
crore, up 48 per cent from Rs 10.50 crore paid in
the previous year.
Cooper, managing director, Blue Dart Express, ranks
number seven with a total package of Rs 9.94 crore,
a five-fold increase from Rs 1.72 crore in the previous
Jindal, vice-chairman and managing director of JSW
Steel, clocked in at number eight with Rs 8.12 crore,
followed by Vivek Paul, ex-Wipro, at Rs 7.53 crore.
He is followed by Pankaj Patel, chairman and managing
director of Cadila Healthcare, who got Rs 7.50 crore.
Mittal, chairman and managing director of Bharti Tele-Ventures
with Rs 7.11 crore package, and Habib Khorakiwal,
chairman and managing director and promoter of pharmaceutical
company Wockhardt with Rs 7.01 crore package, are
at No. 11 and No. 12 respectively.
honchos who saw the maximum jumps include Deepak Puri,
managing director of Moser Baer, whose package went
up from Rs 19 lakh in 2003-04 to Rs 2.16 crore in
2004-05, while Ratul Puri, executive director of Moser
Baer made the jump from Rs 32 lakh to Rs 1.30 crore.
Johannes, whole-time director at Bayer Crop Science,
saw his package go from Rs 14 lakh in 2003-04 to Rs
1.60 crore in 2004-05. Its not entirely a male
bastion, marking her entry is IVM Rao, managing director,
KCP Sugar. Her package rose to Rs 2.09 crore from
Rs 24 lakh.
director of Dabur Pharma, Ajay K Vij, earned Rs 1.06
crore (Rs 44 lakh) and Divis Laboratories executive
director N V Ramana got Rs 2.12 crore (up from Rs
is the youngest top earner at 29. Her take home Rs 1.68
Honda's Pawan Munjal is also part of the hefty
pay rackers with a salary of Rs 13.15 crore
Hondas Brij Mohan Munjal is the oldest
at 81 and rakes in Rs 13.40 crore
Baers Deepak Puri has had a fantastic hike.
His take home is Rs 2.16 crore
Merrill Lynchs Hemendra Kothari takes home
a package of Rs 7.09 crore
the whole, 35 CEOs of India Inc earned more than double
in 2004-05 and 37 took home 50 to 100 per cent more compared
to 2003-04. The five new non-promoter directors at Bharti
Tele-ventures also entered the elite club this year: Norman
Price, group chief technical officer, made Rs 1.99 crore,
Atul Bindal, chief marketing officer, earned Rs 1.05 crore,
Jagdish Kini, CEO (Rs 1.26 crore), Manoj Kohili, president
of mobility leaders group (Rs 1.36 crore), Sarvjit Singh
Dhillon (Rs 1.31 crore) and Anil Nayar, corporate director
(Rs 1.14 crore).
the 248 CEOs, as many as 58 are managing directors, 37 are
chairmen and managing directors, 40 are directors, 17 are
chairmen, 15 are joint managing directors and six are CEOs
and managing directors. Others are executive chairmen, vice
chairmen-managing directors and presidents.