CEOs take away 25 percent of companies' net profit
By
siliconindia news bureau
Bangalore: While companies boast of their highly paid CEOs, a review on the compensation received by this genre reveals that the salary taken home by the CEOs are disproportionate to the net profit of their respective companies. As reported in Economic Times, the amount drew by these industry honchos in some cases is as high as 25 percent of the net profit of their company.
While the normal amount to be received is 0.43 percent of the total net profit, around 65 top level honchos under study grabs more than five percent of the company profits as the take away amount. Future Capital CEO Sameer Sain tops with a compensation that is 24.3 percent of his company's net profit, while IL&FS Investsmart CEO James Whiteford and Bayer CropScience MD Stephen Gerlich grossed more than 10 percent of the net profit of the respective firms. Other names that came to the full focus are Edelweiss Capital's Rashesh Shah and V Ramaswamy, Sun TV's Kalanidhi and Kavery Maran, Apollo Tyres' Onkar Kanwar, Hindustan Construction's Ajit Gulabchand, Bombay Dyeing's Ness Wadia, Ispat's VK Mittal, Apollo Hospital's Prathap Reddy, NIIT's Vijay Thadani, Trent's Noel Tata, Raymond's Gautam Singhania, GM Rao of GMR Infra, Sona Koyo's Surinder Kapur and IVRCL Infra's ES Reddy. The CEOs who earned more than a crore are evaluated in FY 2008.
However, there are CEOs who have faced a decline in their earnings like Balrampur Chini, Moser Baer and Eveready Industries, as they witnessed a greater loss. Ditto Eveready Industries' Managing Director Deepak Puri's total package shrunk by about 11 percent to Rs 3.1 crore.
While the normal amount to be received is 0.43 percent of the total net profit, around 65 top level honchos under study grabs more than five percent of the company profits as the take away amount. Future Capital CEO Sameer Sain tops with a compensation that is 24.3 percent of his company's net profit, while IL&FS Investsmart CEO James Whiteford and Bayer CropScience MD Stephen Gerlich grossed more than 10 percent of the net profit of the respective firms. Other names that came to the full focus are Edelweiss Capital's Rashesh Shah and V Ramaswamy, Sun TV's Kalanidhi and Kavery Maran, Apollo Tyres' Onkar Kanwar, Hindustan Construction's Ajit Gulabchand, Bombay Dyeing's Ness Wadia, Ispat's VK Mittal, Apollo Hospital's Prathap Reddy, NIIT's Vijay Thadani, Trent's Noel Tata, Raymond's Gautam Singhania, GM Rao of GMR Infra, Sona Koyo's Surinder Kapur and IVRCL Infra's ES Reddy. The CEOs who earned more than a crore are evaluated in FY 2008.
However, there are CEOs who have faced a decline in their earnings like Balrampur Chini, Moser Baer and Eveready Industries, as they witnessed a greater loss. Ditto Eveready Industries' Managing Director Deepak Puri's total package shrunk by about 11 percent to Rs 3.1 crore.
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