September 1, 2008

Crorepati CEOs tally swells, 219 join list

Tech Mahindra had the highest number (10) of senior executives drawing a Rs 1 crore-plus salary. Top salaries in sectors like retail and management consulting would be between Rs 5 crore and Rs 7 crore. Thirty of the new members in the crorepati club were from newly-listed companies and 53 entered the bracket by switching jobs

Mumbai: India Inc’s creamy layer — executive directors and above — rewarded themselves handsomely with a 36 per cent pay rise in 2007-08.

As a result, the crorepati club (those earning more than Rs 1 crore annually) saw 219 new entrants, taking the total membership

The list of crorepati CEOs could be much longer — some HR consultants say it would more than double to between 1,200 and 1,400 people — if one includes 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 top salaries in sectors like retail and management consulting would be between Rs 5 crore and Rs 7 crore.

Tech Mahindra had the highest number (10) of senior executives drawing a Rs 1 crore-plus salary. Larsen & Toubro and Tata Motors had eight each; Nagarjuna Constructions seven and Aditya Birla Nuvo, Bharat Forge and Indian Hotels six each.

Thirty of the new members in the crorepati club were from newly-listed companies and 53 entered the bracket by switching jobs. The compensation package of 88 CEOs more than doubled over the previous year, although the number of those drawing Rs 10 crore-plus salaries was unchanged at 18.

Collectively, these executives from 298 companies took home Rs 1,524 crore from salaries, commissions and perquisites (excluding stock options and deferred pay).

The aggregate net profit of these 298 companies increased by the same level of 34.5 per cent at Rs 1,21,454 crore (Rs 90,327 crore) in FY08, but employee cost jumped 26 per cent to Rs 76,124 crore (Rs 60,257 crore). The share of director remuneration to net profit has been almost constant in the last four years at 1.09 per cent.


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