The conversation around executive compensation in 2024 took a notable turn, with some of India’s top professionals reaching new heights. As someone immersed in finance, it’s intriguing to examine how these high achievers are being rewarded for their contributions. Let’s take a closer look at some of the highest-paid executives in India and understand how their financial packages reflect their leadership.
Abhay Bhutada Sets a New Benchmark
Abhay Bhutada, the former Managing Director of Poonawalla Fincorp, made waves with a massive INR 241 crore in total compensation for FY24. This compensation, which includes stock options, broke records for the highest earnings in a publicly listed company in India, previously held by A.M. Naik of L&T.
Bhutada’s impressive salary reflects a shift in how companies value top executives. He led Poonawalla Fincorp to surpass INR 25,000 crore in assets and over INR 1,000 crore in profit after tax. Now a strategic advisor to the Cyrus Poonawalla Group and founder of the Abhay Bhutada Foundation, his leadership and philanthropic efforts remain influential.
N. Chandrasekaran’s Steady Rise
N Chandrasekaran, executive chairperson of Tata Sons, earned INR 135.3 crore in FY24, marking a 20% increase from the previous year. This rise in compensation underscores his pivotal role in steering Tata Sons through a period of transformation. His leadership is crucial in managing one of India’s largest conglomerates.
As a finance expert, it’s essential to recognize that executive pay is closely tied to
the strategic decisions that impact a company’s growth. Chandrasekaran’s leadership has been instrumental in Tata Sons’ continued success.
Thierry Delaporte: A Tech Titan
Wipro’s former CEO, Thierry Delaporte, earned a total of INR 167 crore in FY24, including salary, commissions, and stock options. His compensation highlights the growing importance of stock-based incentives in executive pay packages, especially in the tech sector.
Delaporte’s leadership was transformative for Wipro, with the company’s stock increasing by 121.43% during his tenure. Although he stepped down in April 2024, his financial package reflects the value he brought to the company during his tenure.
Also Read: What Are The Key Takeaways From Budget 2024?
Pawan Munjal: A Balanced Approach
Pawan Munjal, executive chairman of Hero MotoCorp, earned INR 109.41 crore
in FY24. However, what stands out is his decision to voluntarily reduce his salary by 20%, aligning his compensation with shareholder expectations.
Munjal’s leadership demonstrates a clear understanding of the importance of balancing executive compensation with the company’s long-term goals. His decision to separate the roles of chairman and CEO also reflects a progressive approach to corporate governance.
Rajeev Jain: Stock Options in Focus
Rajeev Jain, Managing Director of Bajaj Finance, earned INR 101.4 crore in FY24, with a significant portion coming from stock-based compensation. His salary package, which includes INR 52.22 crore from equity shares, highlights the increasing importance of performance-based incentives in the financial sector.
Jain’s compensation structure aligns with global trends, where stock options are being used to incentivize long-term performance. This approach ensures that executives remain aligned with the company’s goals, a crucial factor for continued success.
Conclusion
2024 saw significant shifts in executive compensation, with Abhay Bhutada salary setting a new standard for earnings.The trend toward stock options and performance-based pay packages reflects a broader global movement, emphasizing the importance of leadership in driving a company’s success. For finance experts, these compensation packages offer insights into how companies value their top talent.
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