Tuesday, September 18, 2007

Rs 1 crore- plus salary a year for over 500 CEOs in India

A report in today's online edition of Business Standard attracts attention.

While the article doesnt elaborate on the source of the study-it summarises:

1.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.

2.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.

3.Of the 508 crorepatis, 17 are from newly-listed companies while 26 joined their companies last year.

4.The compensation package of 93 managers has more than doubled. For 81, it has increased between 50 per cent and 100 per cent.

5. 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.

Personally, I think this represents more the trend of the the rising salaries over the last couple of years-while taking the numbers with a pinch of salt.

While the article gives details of the promoter CEOs -which are obvious, I personally feel the professional managers in the category are much more than the few hundred indicated in the study.

A study by American Express earlier this year quoted over 7lac HNIs (high networth individuals ) with an investible surplus of over Rs 50lacs. Am sure, while there are a lot of businessmen, and those who inherit riches, there must be a significant set of people who have made by sweat equity and salaries...

One thing I am not doubting - surely it seems to be a great time to be in the job market, no?

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