Top executives at private-sector Indian companies that trade on the benchmark index BSE Sensex are getting richer and richer. The average salaries of CEOs and top execs of private-sector Indian companies, has doubled in the past two years, reaching ₹20 crore, according to study by PTI.
The average salaries of top executives at the listed, private-sector companies also far exceeded their counterparts in the public-sector where annual top executive salaries average at about ₹25 to ₹30 lakhs.
The PTI study was based on the disclosures made by 20 out of the total 24 private-sector companies on the Sensex; the remaining four are yet to disclose their figures. The data includes remuneration paid to top-paid executives including executive chairpersons, CEOs or managing directors.
The averages are based on salary, commissions, allowances, value of all perquisites and employee stock options exercised during the year, among other benefits disclosed by the companies as part of the total executive compensation.
The highest-paid execs at Indian private companies in 2015 and 16 include:
A M Naik, Executive Chairman, L&T (₹66.14 crore)
Vishal Sikka, CEO, Infosys (₹48.73 crore)
Desh Bandhu Gupta, Chairman and Founder, Lupin Ltd (₹44.8 crore)
Overall, the average salary of top executives of listed Indian companies –including both private and public-sector – was nearly ₹19 crore.
At the lower end of the overall remuneration were executives at private banks including:
Aditya Puri, Managing Director, HDFC Bank (₹ 9.7 crore).
Chanda Kochhar, CEO, ICICI Bank (₹6.6 crore)
Shikha Sharma, MD & CEO, Axis Bank (₹5.5 crore)
Among the six public sector companies on the Sensex, only State Bank of India (SBI), chairman Arundhati Bhattacharya's salary for the 2015-016 is known; Bhattacharya received about ₹31.1 lakh in 2015-2016. Sun Pharma, Maruti, Hero MotoCorp and Cipla are yet to report the latest renumeration figures.
Despite the increase, the average CEO salaries still remain one sixth of those of the top listed companies in the US, at $20 million (about ₹130 crore) in 2015.
BSE Sensex's market capitalisation reached a record high of ₹108.03 trillion in late July, mirroring the strength in the global markets.
With PTI inputs