Special Report: Pay-Ratio Disclosure by Nifty Companies

As per the Companies Act, 2013, Indian companies have started making director pay-ratio disclosures in annual reports. This report analyses the pay-ratio disclosures made by Nifty-50 companies and provides key-takeaways. The report also compares Indian pay-ratio disclosure regulations with those in the US.

Highlights of this report are:

  • 34 Nifty-50 Companies disclosed Pay-ratios. Pay of 95 Directorships is analysed in this study
  • 3 Companies – Bajaj Auto, Bosch and Maruti Suzuki shied away from making any such disclosures
  • PSUs are exempted from Pay-Ratio Disclosures. Nifty-50 has 10 PSUs
  • 11 Directors’ Remuneration exceeds 400 times the median employee pay of their companies. This includes 3 Directors each of Hero MotoCorp and Lupin
  • 70% of the top-10 Highest Paid Directors of Nifty companies are Promoter individuals
  • Mr. Kumar Mangalam Birla was the only Non-executive Director among the top-10 highest paid directors. He is Non-executive Chairman of 4 Nifty companies and was paid a total of Rs. 40.5 Crores in FY15 from these companies
  • Rs. 9.00 Crore: Average remuneration of an Executive Director of Nifty Company
  • Rs. 5.87 Lakh: Average Median Employee Remuneration
  • 170 times: Average ratio of Pay of Executive Directors to the Median Employee Remuneration
  • 8 Directors paid more than 1% of the standalone net profits with the highest being 2.33%

The full report, prepared by InGovern, can be downloaded from here: Pay Ratio Disclosure