Promoter salaries in India show sharp divide - some earn crores, others take zero

A Mint analysis of Nifty 50 companies reveals wide disparities in promoter pay structures. While some promoters like Pawan Munjal of Hero MotoCorp and Rajiv Bajaj of Bajaj Auto draw hefty remuneration packages, others, such as Mukesh Ambani (RIL) and Nandan Nilekani (Infosys), have opted out of salaries altogether. However, most continue to earn significantly more via dividends. The lack of regulatory checks, particularly the ability of promoters to vote on their own pay, raises serious governance red flags around transparency and potential conflicts of interest.

Our Founder and MD, Mr Shriram Subramanian, highlighted that there are several traditional companies where promoter salaries are disproportionately high and much higher than peers. That has been a long-standing concern. Promoters should ideally draw compensation in line with the highest-paid executive in their company, or close to that level, with dividends forming the bulk of their income. He added that Promoter salaries should be performance-linked, benchmarked against peers, and evaluated in the context of long-term shareholder returns and not just short-term gains.

Read the full article here: https://www.livemint.com/companies/promoter-salaries-in-india-show-sharp-divide-some-earn-crores-others-take-zero-11754401868347.html