Ambani gets 205-times of median pay, ITC's Deveshwar 439-times
Industrialist and India's richest businessman Mukesh Ambani has not taken a pay hike for seven years but his salary is over 205-times that of the median employee remuneration at Reliance Industries Ltd (RIL).Updated: Jul 06, 2015 07:40 IST
Industrialist and India's richest businessman Mukesh Ambani has not taken a pay hike for seven years but his salary is over 205-times that of the median employee remuneration at Reliance Industries Ltd (RIL).
However, this ratio takes a hike at 439-times in the case of ITC's executive chairman YC Deveshar.
The same ratio stands much lower at 89-times for IT major Wipro's chairman and managing director Azim Premji, and just at 19-times for mortgage giant HDFC's chairman Deepak Parekh ib the latest fiscal 2014-15.
However, HDFC Bank's managing director Aditya Puri got a remuneration that was 117-times of the median employee pay at the bank, while for ICICI Bank's CEO Chanda Kochhar, it was 97-times and over 74-times for Axis Bank's managing director and CEO Shikha Sharma.
For Vishal Sikka, CEO of IT giant Infosys, it was 116-times of the median employee pay at the company. The same ratio for HUL's CEO Sanjiv Mehta was 93-times, but much higher at 293-times for Vedanta Limited's chairman Navin Agarwal.
Listed companies have begun disclosing these ratios, along with other comparisons such as salary hikes for the top management personnel and an average staff, for the first time pursuant to the new Companies Act and Sebi's latest Corporate Governance Code coming into force.
While a majority of the companies are still in the process of disclosing these details, the disclosures made so far show a wide variance in these ratios, while there is also a huge difference between the pay hike figures for the top management personnel and an average staff member in many cases.
However, there are a few cases where the increase in the median employee remuneration is almost equal or even higher than the same for the CEOs and other key management personnel.
In case of RIL, chairman and MD Mukesh Ambani has kept his salary capped at Rs 15 crore for seven years now, while the median remuneration of employees increased by 3.71% to Rs 7.29 lakh during 2014-15.
The total remuneration of Key Managerial Personnel in fact dipped by 1.93% to Rs 73.28 crore. ITC chairman YC Deveshwar's remuneration rose by 24% during the year, as against a rise of 14% in the company's median employee remuneration. The overall Key Managerial Personnel remuneration rose by 20%.
Deveshwar's gross remuneration in 2014-15 stood at over Rs 15 crore, but his net pay was much lower at Rs 7.3 crore. In case of Wipro, Premji saw his pay decline by 53% to Rs 4.78 crore, while Median Employee Remuneration rose by 9.5%.
Wipro'S CEO TK Kurien got a pay package that was 170-times of the median employee remuneration, while he got a hike of 39%. At HDFC Ltd also, Vice Chairman and CEO Keki Mistry's remuneration was 83-times of the median employee pay, while the same for Managing Director Renu Sud Karnad was 77-times.
The remuneration rose by 15% for both Mistry and Karnad, while the increase in the median remuneration of employees in fiscal year 2014-15 stood at 16%.