From global family insurance to minimum tenure, India Inc. is going out of the way to keep its honchos happy. But not all perks are in black and white.
GUENTER BUTSCHEK, the CEO of Tata Motors, draws an annual basic salary of 2.5 crore. But his perks and allowances total about 13 crore. With incentives and retirement benefits, his remuneration adds up to a little over Ì€ 26 crore. That’s not all. In case the company initiates termination of his service before the end of his term (for reasons other than the violation of the Tata Code of Conduct), he will be entitled to severance pay for 12 months or the balance term of the agreement, whichever is less. HUL Managing Director Sanjiv Mehta’s annual salary is 6.96 crore but he received profits of 5.6 crore in lieu of salary in 2017/18, besides other perks worth over 1 crore. He also has stock options valued at Ì€ 5.43 crore. In all, the amount comes to over 19 crore.
Clearly, when you are in the driver’s seat of marquee names in India Inc., pampering G is inevitable. And the bigger the company, the higher the benefits — which were traditionally defined as perquisites but now encompass everything the company does to keep the person at the helm happy and healthy.
“CEOs need to be taken care of. Corporate boards think CEOs must be completely immersed in work and not worry about exigencies or future requirements. Perquisites are a way to plug the gaps in creating the best support system for CEOs,” says R. Suresh, the founder of boutique search and consulting firm INSIST Executive Search. “Perquisites are a way to make the top job lucrative and hold back CEOs by giving benefits in kind,” says Pankaj Dutt, Managing Partner of Alexander Hughes’ India and Malaysia operations.
This story is from the May 19, 2019 edition of Business Today.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the May 19, 2019 edition of Business Today.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Look Before You Leap
In 2025, Investors Will Need To Factor In Volatility Across Asset Classes
"Focus on the challenge of each customer"
SHASHANK KUMAR MD & CO-FOUNDER I RAZORPAY Razorpay is India's first full-stack financial solutions company
PEDAL ON THE FUTURE
THE MG WINDSOR EV, WITH ITS FUTURISTIC AND MINIMALIST DESIGN, COMBINES THE BEST OF BOTH WORLDS-COMFORT AND TECHNOLOGY
BREATHE EASY
Whether you're battling allergies, looking to remove pollutants, or simply want to breathe easier, the right air purifier can make a difference
The Taste of India in a Glass
FROM ROYAL LIQUEURS TO DISTILLED MAHUA, INDIAN HERITAGE ALCOHOLIC BEVERAGES ARE HAVING THEIR DAY IN THE SUN
MISSING ADVISORS
INDIA HAS JUST ONE INVESTMENT ADVISOR FOR NEARLY EVERY 200,000 INVESTORS. AT A TIME WHEN RETAIL PARTICIPATION IN THE STOCK MARKETS IS BOOMING, THIS ASSUMES SIGNIFICANCE
TURNING A CORNER
SHARED ELECTRIC MOBILITY START-UP YULU'S SHIFT TO SERVICING THE QUICK COMMERCE SECTOR IS HELPING IT GROW FAST. IT IS NOW FOCUSSING ON IMPROVING ROAD SAFETY FEATURES AS IT TURNS EBITDA POSITIVE
REALITY CHECK
INDIAN STOCK MARKETS PLUNGED BEGINNING OCTOBER FOR A HOST OF REASONS, INCLUDING A FALL IN FII OWNERSHIP. HOW DEEP WILL THE CORRECTION BE?
TRUMP'S TRADE TANGO
The return of Donald Trump as the 47th President of the US has put the global economy on edge. India, too, is unlikely to remain unaffected. How will policymakers meet this latest challenge?
"The essence of the Trump administration will be transactional”
Global investor, analyst, and best-selling author Ruchir Sharma decodes why Donald Trump won the elections, what India should do, the risks, and more
