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Rs 1 crore-plus salary a year for over 500 CEOs
Deepak Korgaonkar in Mumbai | September 18, 2007
The top layer of India Inc -- executive directors and above -- rewarded itself with a 32 per cent pay rise in the last financial year (2006-07) while raising the salaries of its employees by 22 per cent.
The shower of riches created 174 new crorepatis, pushing up the number of corporate managers earning at least Rs 1 crore a year to 508 from 334 in 2005-06.
The number of those earning over Rs 1 crore (annual compensation includes salary, perquisites and commission) may well rise to 580 if the details of the 72 that figured in this list last year are made available.
Of the 508 crorepatis, 17 are from newly-listed companies while 26 joined their companies last year.
Incidentally, the number of companies covered in this study was also 508. Collectively, the top layer of these, including professional managers and promoters, took home Rs 1,389 crore in 2006-07 compared with Rs 1,050 crore the year before.
At 407 of these companies, whose comparative figures are available for 2005-06, the rise in pay of the top layer was 40 per cent.
The compensation package of 93 managers has more than doubled. For 81, it has increased between 50 per cent and 100 per cent. The gross salary of as many as 13 was above Rs 10 crore.
Reliance Industries [Get Quote] Chairman & MD Mukesh Ambani continues to lead the pack of crorepatis. He took home Rs 30.46 crore in the last financial year, up about a quarter from Rs 24.51 crore in the previous year. He received Rs 29.06 crore as commission and Rs 1.08 crore as salary and perquisites.
Overall, 50 top executives from pharmaceuticals, 44 from information technology, 26 from constructions, 23 from auto-ancillaries, 22 from hotels, 20 from telecommunications, 17 from engineering, 14 from cement and 13 from banking drew over Rs 1 crore in 2006-07.