Despite the lockdown and poor economic activity, India Inc showed great resilience in the first year of the pandemic, managing decent profit growth. The next year, 2021-22, was even better for companies as revival in economic activity coupled with reduction in the intensity of the pandemic helped in revenue as well as profit growth. With the strong performance of the companies, the top honors of the companies were also able to take home a higher compensation in the last financial year.
An analysis of the remuneration of CEOs/MDs of companies that make up the Nifty 50 index shows that in FY12, these payments had increased by 45 per cent as compared to FY12. While the average salary was ₹16.41 crore in FY21, it increased to ₹23.83 crore in FY22.
Some CEOs like Sajjan Jindal and C Vijayakumar saw a big hike in their annual remuneration, while others like Uday Kotak and Mukesh Ambani decided to forego their salary last year.
Here’s a breakdown of what the heads of top Indian companies earned in FY12.
whose pay packets increased
The jump in the overall pay-packet of CEOs/MDs in the last financial year was mainly due to a sharp increase in the salaries of some. HCL Technologies CEO C Vijayakumar got the biggest increase in remuneration in FY22. He attracted close to ₹131 crore as remuneration in FY2012, which was 100 crore more than the salary in FY2011.
However, about three-fourth of the compensation in 2021-22 was on account of long-term incentives received from HCL America Inc. This payment is made once in two years and was for FY 2020 and FY 21. Vijayakumar took over as the CEO and Managing Director of the company in July 2021.
Sajjan Jindal got the second biggest increase in remuneration, which was over ₹61 crores. From ₹73.38 crore in FY21, his salary increased to ₹134.8 crore in FY22, making him one of the highest paid Managing Directors in India. The profit linked commission earned by Sajjain Jindal more than doubled in FY22.
At number three is CP Gurnani, MD and CEO of Tech Mahindra. His remuneration increased by ₹48 crore in FY22. But a major part of the increase was due to the ESOPs undertaken by them during the year.
SN Subrahmanyan, managing director and chief executive officer of Larsen & Toubro, saw an increase of ₹32 crore in their remuneration in FY22. Other chiefs who saw a big increase in their pay-packets were Satish Pai of Hindalco Industries and Salil Parekh of Infosys.
Highest paid chiefs in FY22
Sajjan Jindal tops the list of highest paid CEO/MD in FY22. As domestic demand and economic activity picked up, JSW Steel gave a performance of its own in the last fiscal. “Our capacity utilization level remained at a high of 89 per cent and delivered record steel production,” Sajjan Jindal said in the 2021-22 annual report. “JSW Steel posted its highest ever EBITDA of ₹39,007 crore and net profit of ₹20,938 crore.” While shareholders took a record dividend of ₹17.35 per share, the CEO’s payout was also at a record high.
C Vijayakumar, CEO, HCL Technologies, is next in line with ₹131 crore received as remuneration. Hero MotoCorp Managing Director Pawan Munjal attracted around 20 million less in FY 2021-22 as compared to the previous fiscal. Despite this, he is the third highest paid among Nifty 50 companies earning Rs 84.35 crore.
And then there were others who did not want to take any remuneration from the company they ran. Mukesh Ambani of Reliance Industries continued to pay his salary for the second consecutive year in FY22.
In the wake of the pandemic, Kotak Mahindra Bank Managing Director and CEO Uday Kotak also opted to forgo his salary and took only ₹1 as token amount in FY22.
which industry pays the most
The information technology industry awards the best to its CEOs as per our analysis. Heads of the top 3 IT companies in Nifty 50 – HCL Technologies, Wipro and Infosys – had an average salary of around Rs 93.94 crore, pushing it to the top spot.
Looking at CEO salaries of JSW Steel, Hindalco Industries and Tata Steel, the average salary of Metals and Mining Industry is ₹66.94 crores.
Automobile companies come second in the list of generous payers. The average salary of the heads of Hero MotoCorp, Bajaj Auto and Eicher Motors was ₹51.32 crore.
Healthcare, construction materials, financial services, fast-growing consumer goods and oil gas and consumer goods industries are followed.
public vs private
It is no secret that the public sector pays much less than the private sector. But sometimes the public sector has benefits in the form of residential housing, transportation and health facilities to make up for the poor pay.
Gurdeep Singh, Chairman and Managing Director of NTPC Limited, has been the highest paid among public sector Nifty 50 companies with a salary of ₹ 1.37 crore in FY22.
Arun Kumar Singh, the second highest-paid head from the public sector, is the Chairman and Managing Director of Bharat Petroleum Corporation Limited with an annual salary of ₹1.32 crore.
Oil and Natural Gas Corporation’s Chairman and Managing Director Alka Mittal received remuneration close to Rs 96 lakh in FY22, which includes salary, other benefits and allowances and performance incentives in the form of certain components.
21 August 2022