Mumbai: Membership for the elite “Million-Dollar CEO Club” shrank nearly 17 percent in FY21 even as the average Take-Home of the C-suite executives fired.
The number of CEOs / CXOs in a million dollar salary bracket (more than Rs 7.4 Crore) fell to 125 at 2020-21 from 150 a year ago, while the average salary jumped more than 21% to Rs 20.4 Crore (RS 16 , 8 crore FY20).
According to the “million dollar salary” study conducted by EMA partners, the total compensation obtained by 125 top executives increased by 1.4 percent to Rs 2,549 Crore at 2020-21.
The study was based on the annual report of the 200 BSE Company However, the average salary has increased.
In FY20, the average salary growth was muted by 0.4 percent, while the FY19 fell 3 percent.
One of the reasons for shrinking the elite club was the weakening of the rupee against the dollar.
Rupees have depreciated nearly 6 percent against the dollar since last year, ending FY21 in more than RS 73.
To calculate the salaries of millions of dollars, rupees were taken at 74 with dollars.
This establishes 7.4-Crore’s annual compensation as a cutoff to be included in the “Million Dollar Salary Club”.
At FY20, Rupee is in 70 against the dollar, when the elite club has 150 members.
The CXOS professional club in 68 continues to surpass led by promoters, namely at 57.
The gap between the growth of compensation obtained by CXOS promoters and professional CXOS has also been widened.
In the year reviewed, while CXOS professionally saw 6.4 percent compensation growth, CXOS promoters took a hit because their total compensation declined by 2.3 percent at FY21.
Among the promoter CEOs, Kavery and Kalanithi Maran from Sun TV lead this year’s list also with compensation around RS 88 Crore each.
Sajjan Jindal returned to the top 10 with RS 73 Crore compensation, which included the RS 60 Crore spider commission.
EMA India Partners MD K Sudarshan said, “Despite the pandemic, raging up to 2020-21, most of the business has risen again intelligently and the company has posted an impressive number.
The company has also witnessed the cost of depression due to various expense control steps throughout the year.
As a result , we have not seen significant changes in CEO compensation, which have seen slightly increasing when compared to the previous year.
As has become a trend, in line with the growing business scale, we continue to see more professionals in the mixture.
Which now gets upper dollar compensation in line With their global colleagues.
“Some of the executives who retired and out of the club are former HDFC Bank MD Aditya Puri and former Paint Asia MD & CEO of KBS Anand.
New participants to the club include Thierry Delaporte, who took over as CEO Wipro in 2020 with compensation for RS 64 Crore, which took it directly to Top 10; Poca Poca Pabilan Lessons (Rs 12 Crore); Sunil D’Souza of Tata Consumer Products (Rs 10 Crore); And Samina Hamied from Cipla (RS 8 Crore).
Some such as Salil Parekh from Infosys have reached the top 10 with a 45 percent leap in compensation to around Rs 50 Crore because it includes RS 31 Crore stock options carried out throughout the year.
Sudarshan said he hoped to see more and more professional managers dominated this list even as managers promoter business immediately continued to display the scale of their business.
“Shareholders and supervisors are very watching the previous CEO compensation.
The council will move carefully and maintain the interests of the overall shareholders in the mind and performance of the CEO in the registered business will increase,” Sudarshan said.
At a million dollar salary club, 28 CXO comes from the pharmaceutical sector; 19 comes from industry / manufacturing (down from 33 a year ago); 16 comes from diverse conglomerates, 14 comes from automotive (down from 17), 13 comes from financial services, 10 of consumers / FMCG and 10 of IT / ITE.