Salary and Pay Rates

What is the highest remuneration of a film star and who is the highest remuneration taker in the world?

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2007-09-03 03:46:56

New Delhi, India: While the division of the Reliance empire two

years ago may have made Anil Ambani smile, its elder brother and

chairman of Reliance Industries Mukesh Ambani who is ultimately

laughing all the way to the bank.With an annual package close to Rs

25 crore - over 10 times more than Anil's Rs 2.42 cr - Mukesh is

also way ahead of the top brass of entire India Inc. In the latest

fiscal year ending March 2007, Mukesh took home a total Rs 24.51

crore as CMD of RIL - the highest among more than 10,000 top

executives and directors at about 1,200 companies. When the

brothers were together, they took home a package of Rs 21.9

crore each at Reliance

Industries in the financial year 2004-05, according to information

available in the company's annual report. While Mukesh continues to

hold the position of Chairman and Managing Director at Reliance

Industries, Anil was the Vice-Chairman and Managing Director till

June 18, 2005. Anil does not even figure in the top-100 list with a

total remuneration of about Rs 2.42 crore from three of his group

companies - Reliance Energy, Reliance Communications and Reliance

National Resources Ltd (RNRL). Anil's package as REL Chairman was

Rs 2.34 crore, while as R-COM and RNRL Chairman he got Rs 4.8 lakh

and Rs 3.2 lakh respectively. Mukesh is closely followed by Sun TV

CMD Kalanidhi Maran and Joint MD Kavery Kalanidhi, whose annual

remuneration is close to Rs 23.26 crore each in 2006-07. Telecom

giant Bharti Airtel's CMD Sunil Mittal ranks at fourth position

with close to Rs 15 crore, followed by Dr Reddy's Labs Executive

Chairman K Anji Reddy at the fifth rank with Rs 14.4 crore.

"Success today is linked to the head of an organisation and

movements happen quickly. In order to attract the best talent in

the industry and retain them organisations have to loosen their

purse strings," Partner with Elixir Web Solutions' Vipul Prakash

commented on the high salaries, ""If a company performs well, the

CEO gets a hike of 20 to 30 per cent on the fixed part of the

salary. To add to it, the value of stock goes up and year after

year the number of stocks also increases," Prakash added.

Two-wheeler major Hero Honda's Chairman Brijmohan Lal Munjal and

the company's MD and CEO Pawan Munjal are ranked at sixth and

seventh positions with Rs 13.99 crore and Rs 13.88 crore each.

Jindal Steel's Executive Vice-Chairman and MD Naveen Jindal comes

at eighth position (Rs 13.5 crore), followed by Hero Honda's Joint

MD Toshiaki Nakagawa (Rs 13.44 crore) and JSW Steel Vice Chairman

& MD Sajjan Jindal (Rs 13.24 crore) in the top ten in terms of

annual pay package. The annual remuneration of as many as 15

executives stood at more than Rs 10 crore. These executives also

included Cadila Health CMD Pankaj R Patel (Rs 12.43 crore), Dr

Reddy's Labs MD and Chief Operating Officer Satish Reddy (Rs 10.87

crore), Dr Reddy's Labs Executive Vice Chairman and CEO G V Prasad

(Rs 10.87 crore), Mercator Lines CMD Harish Kumar Mittal (Rs 10.07

crore) and Mercator Lines Joint MD Atul J Agarwal (Rs 10.07 crore).

More than 300 executives took home a package of more than Rs one

crore, while those with salary in lakhs, but less than a crore,

were about 3,000 in 2006-07. Another recruitment firm Matrix HR

Solutions' CEO Narendra Kala said: "A CEO is placed at a high risk

position, where delivery is very critical. He is the one answerable

to the shareholders, he doesn't have an option of going wrong. Only

an extraordinary person having complex competencies can be a CEO,

and for such a gem of a person the company has to spend." However,

there are others who feel that the salaries of CEOs in India is

still not at par with the global standards. Indian CEOs are

underpaid in comparison to their international counterparts,

although slowly they are coming to a parity, Finesse PR's HR

Practice head Saurabh Azad said. "Today when Indian economy is

competing in the global market, the salaries will have to be in

parity with the international salaries or else we will face the

brain drain at the CEO level as well," he added.

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