Chiefs of Indian bourses get crores as pay

It pays literally in crores (tens of millions) to head the entities facilitating trading in stocks and commodities, although the economic downturn seems to have forced investors to fly away from the markets.

An analysis of remuneration paid to the business heads at various national stock and commodity exchanges in the country shows that most of them were paid crores of rupees in the last financial year and were mostly awarded a considerable increase in their compensation from the previous year.

However, with the economic downturn weighing down on the investors' sentiments, the business has taken a hit at stock exchanges, although the commodity bourses have managed to grow their turnover in non-agricultural products.

Leading the remuneration tally, National Stock Exchange gave its managing director Ravi Narain a total payout of Rs 3.34 crore (Rs 33.4 million) in 2007-08.

At the same time, the NSE's deputy managing director Chitra Ramakrishna was paid a remuneration of Rs 2.16 crore (Rs 21.6 million).

Not far behind, the Bombay Stock Exchange paid a total remuneration of Rs 1.18 crore (Rs 11.8 million) to its managing director and chief executive officer Rajnikant Patel in 2007-08, which more than doubled from about Rs 52.3 lakh (Rs 5.23 million) in the previous year.

Patel has, however, resigned from the BSE and in November 2008 joined as president-exchange business at Anil Ambani Group firm Reliance Money, which has entered the commodity exchange business through a stake purchase in National Multi-Commodity Exchange of India Ltd.

While his compensation at Reliance Money is not known yet, Patel's remuneration from the BSE in 2007-08 was less than that of another director and company secretary at NSE J Ravichandran, who was the third highest paid executive at the bourse during the year after its managing director and deputy managing director.

Ravichandran was paid total remuneration of about Rs 1.17 crore (Rs 11.7 million) during the last fiscal 2007-08.

While the total remuneration for the country's second largest commodity exchange NCDEX's managing director during 2007-08 could not be ascertained, the payout in the last six months of the fiscal totalled Rs 72.5 lakh (Rs 7.25 million).

The largest commodity bourse MCX did not give any salary to its then managing director Jignesh Shah in 2007-08, although he received a total of Rs 2.8 crore (Rs 28 million) in commission linked to the company's profit.

Shah was named as vice chairman of MCX early this fiscal, while Joseph Massey, formerly deputy managing director, became managing director and chief executive.

Massey got salary and allowances totalling Rs 95.21 lakh (Rs 9.52 million) in the last financial year.

Shah, however, was paid a remuneration of Rs 3.44 crore (Rs 34.4 million) in 2007-08 as chairman and managing director of Financial Technologies, promoter of MCX.

MCX's total managerial remuneration, including salaries, allowances, commissions, perquisites and other benefits, more than double to Rs 5.27 crore (Rs 52.7 million) in 2007-08 from about Rs 2.02 crore (Rs 20.2 million) in the previous fiscal.