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Over 200 CEOs are millionaires
By agencies
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Wednesday, 06 July 2005, 19:30 IST
MUMBAI: The salary hike among most of the companies has increased the number of CEOs as millionaires.
S Ramadorai, CEO and managing director of Tata Consultancy Services (TCS), will more than double his pay packet in 2005-06. TCS has proposed to raise his salary from Rs 225,000 per month to Rs 500,000 per month with effect from April 1 this year. He will also get incentives up to 200 percent of his salary and other remuneration like commission, perquisites and allowances.
Ramadorai is not the only CEO who is getting such a raise. Little-known Shree Precoated Steels has proposed to double the basic salaries of its chairman, managing director and directors for 2005-06. Crompton Greaves will increase the salary of its Managing Director SM Trehan from Rs 400,000 per month to Rs 600,000 per month this year.
While India Inc is proposing to raise the salary of most of its chief executives in 2005-06, the number of CEOs drawing an annual salary of over Rs 10 million has already crossed 200 in 2004-05 compared with 162 in the previous year. The list will look even longer as several large companies, including Reliance Industries, have not yet released their annual reports.
Just five years back, the number of crorepati CEOs was just 41. It swelled to 96 in 2002-03 and 162 in 2003-04. The number increased to 40 CEOs in 2004-05.
According to a senior HR consultant when the economy is on a roll, it is only natural for the CEOs salary to grow. Until now, the promoters CEOs were having the cake. The professionals are getting their dues at last. We foresee the trend to continue.
The gross remuneration of Yash Mahajan, vice-chairman and managing director of Punjab Tractors, rose from Rs 3 million in 2003-04 to Rs 12.6 million in 2004-05. Kaushik Sagar V, business leader with Bayer CropScience, got Rs 13.2 million in 2004-05 against Rs 4.4 million in the previous year.
Theres more. The basic pay of Jalal Ashwin Dani and Manish Mahendra Choksi, both directors of Asian Paints, has gone up from Rs 156,000 per month in the last financial year to Rs 262,000 lakh in 2005-06.
Sajjan Jindal, vice-chairman and managing director of Jindal Vijayanagar Steel, was rewarded for his efforts to help Jisco turn around and merging Jindal Vijayanagar into it. Jindal, who had taken home Rs 8.3 million in 2003-04 as CMD of Jisco, earned Rs 81.2 million in 2004-05, including commission of Rs 68.1 million as vice-chairman and managing director of the merged entity.
Vivek Paul, who left Wipro last week, took home Rs 71.5 million as vice-chairman of the company last year. Former Ranbaxy Laboratory CEO Davinder Brar earned Rs 41.7 million and A Hieronimus, MD of Motor Industries, took home Rs 32.5 million.
Wockhardt promoter Habil Khorakiwala was paid Rs 70.1 million and Blue Dart Managing Director Clyde Cooper got Rs 99.4 million with one-time retention compensation of Rs 68.0 million.