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The study of salaries of Indian promoters and executives who earn more than Rs 1 crore (R 10 million) per annum, shows their salaries and wages rose by 24.9 per cent in 2003-04.
Executives and promoters of 69 companies earn more than Rs 1 crore per annum. In absolute terms, the salary packages of these executives went up by almost Rs 50 crore (Rs 500 million) to Rs 245 crore (Rs 2.45 billion) in 2003-04.
While their salaries and perquisites rose by 29.66 per cent, their commissions, usually a fixed share of the company's net profits, increased by 23.7 per cent.
Compared with this, managers and executives took home a salary hike of 42 per cent. But other employees got a 16 per cent salary hike. The salaries of managers increased at a much faster clip than the salaries and commissions of promoters in 2003-04.
Brijmohan Lall Munjal tops the list (of promoters and non-promoter executives), with a compensation package of Rs 11.71 crore (117.1 million) in 2003-04, up 22.9 per cent from Rs 9.53 crore (Rs 95.3 million) in 2002-2003. Munjal earned Rs 9.22 crore (Rs 92.2 million) from commissions and Rs 0.62 crore by way of salary.
The Ambani brothers, Mukesh and Anil, are second on the list, with a take-home package of Rs 11.62 crore (Rs 116.2 million) each, almost 94 per cent of which comes from commissions. This is around 4.6 per cent lower than the last year's package of Rs 12.18 crore (Rs 121.8 million) each. The fall is largely on account of lower commissions on profit.
Among other promoters in the super-salary bracket -- those earning more than Rs 10 crore -- are three others from Hero Honda Motors: Pawan Kant Munjal stands third, with an annual package of Rs 11.53 crore (Rs 115.3 million), up 22.7 per cent from Rs 9.40 crore (Rs 94 million) last year; Akio Kazusa fourth with Rs 11.36 crore (Rs 113.6 million), a 21.3 per cent growth over last year's Rs 9.37 crore (Rs 93.7 million); and Shinichi Nakayama fifth with a salary and commission package of Rs 10.13 crore (Rs 101.3 million).
Hemendra Kothari, promoter of DSP Merrill Lynch, ranks sixth on the combined list with a package of Rs 7.08 crore {Rs 70.8 million) up 1 per cent} in the accounting year ended December 2003.
Habib Khorakiwala, chairman and managing director and promoter of pharmaceuticals company Wockhardt, ranks seventh with a package of Rs 6.82 crore (Rs 68.2 million) , up a hefty 86.8 per cent from Rs 3.65 crore (Rs 36.5 million)
Promoters make up the rest of the remaining top 10 ranks. At number nine is Sunil Bharti Mittal of Bharti Tele-Ventures with earnings of Rs 5.67 crore (Rs 56.7 million), up 6.6 per cent over last year's salary, and at number 10 is Cipla promoter YK Hamid with earnings of Rs 5.34 crore (Rs 53.4 million).
Among non-promoter executives, Vivek Paul is followed by Davinder S Brar, former CEO and managing director of Ranbaxy Laboratories at Rs 4.05 crore {(Rs 40.5 million) Rs 3.43 crore}.
More join top league
The number of non-promoter executives earning more than Rs 1 crore per annum has almost doubled from 25 in 2002-03 to 48 in 2003-04.
Topping the list of debutants is K Miyazawa, technical director of Asahi India Safety Glass. He earned a Rs 1.87 crore (Rs 18.7 million) pay packet in 2003-04.
The 47-year old Miyazawa holds a master degree in Engineering, and had earned Rs 0.97 crore in 2002-03. Ram Bhagat, president and executive director of Polaris Software, who missed the bus last year by a whisker ranks second in the new entrant list with a salary of Rs 1.58 crore (Rs 15.8 million) in 2003-04. Last year, he earned Rs 0.97 crore.
Jai Menon, director, IT and technology, Bharti Tele-Ventures, earned Rs 1.44 crore (Rs 14.4 million) in 2003-04, and was in the third place on the list.
Sunil Duggal, director, Dabur India whi earned Rs 1.26 crore { (Rs 12.6 million) Rs 0.92 crore} is at the fourth place and S M Trehan, managing director, Crompton Greaves with Rs 1.23 crore {(Rs 12.3 million) Rs 0.68 crore} is at the fifth place.