New Delhi: Former ICICI Bank veteran Shikha Sharma will take home a hefty pay packet as Axis Bank managing director and CEO that will be in excess of Rs2 crore a year, if one counts allowances and other perquisites.
Sharma will also be provided loan facilities totaling Rs51 lakh by the bank, besides fully furnished accommodation, office car and telephone among other benefits.
She assumed office at Axis Bank in June this year, but her remuneration is yet to be ratified by the country’s third largest private sector bank’s shareholders, who have now been asked to either approve or reject the proposal by 8 September.
According to the bank’s proposal, Sharma will get over Rs1.75 crore as salary and allowances towards entertainment, house rent and upkeep of her residence.
In addition to these, Sharma will also get a number of perquisites adding up to more than Rs90 lakh, taking the total package to about Rs2.65 crore, exclusive of benefits like accommodation, car and telephone and reimbursements of medical, entertainment and certain official expenses.
While her remuneration could not be ascertained at her previous organisation ICICI group, where she was MD and CEO of ICICI Prudential Life Insurance, Sharma’s proposed package at Axis Bank is almost equivalent to the gross remuneration paid to ICICI Bank’s CEO and MD.
ICICI Bank’s then CEO and MD K.V. Kamath was paid a total remuneration of about Rs2.65 crore in the year ended 31 March 2009, while his successor Chanda Kochhar was paid a gross salary of about Rs1.65 crore in the same year.
ICICI Bank has fixed Kochhar’s monthly salary as the CEO and MD in the range of Rs7-13.5 lakh, which is the same as that for Kamath in this role earlier.
Before assuming office of CEO and MD in May this year, Kochhar was joint MD and CFO at ICICI Bank and commanded a salary of Rs4-10.5 lakh. Sharma will get a monthly salary of over Rs10 lakh, excluding allowances and perquisites.
Sharma, who was reportedly in the race for the top job at ICICI Bank, had quit the group days before Kochhar succeeded Kamath as ICICI Bank CEO and MD on 1 May.
Axis Bank named Sharma its CEO and MD on 20 April, but she assumed office on 1 June after the bank’s shareholders approved the appointment for a period of three years.
Now, the bank needs the shareholders’ approval for the remuneration to be paid to Sharma, and also for its deputy MD (Designate) M.M. Agrawal.
In accordance with the proposed remuneration, Sharma will get a salary of Rs1.25 crore, HRA of Rs48 lakh (payable if she lives in her own accommodation), Rs2.4 lakh for upkeep of accommodation (if it is provided by the bank) and her official entertainment would also be taken care of by the bank.
The proposed perquisites include a fully furnished residence provided by the bank, 12% of basic pay with equal contribution by the bank towards provident fund, one month’s salary as gratuity for every year of service, reimbursement for travelling and medical expenses for self and family and leave fare concession of Rs8 lakh per year.
The perquisites also include free use of the bank’s car with driver, telephone facilities, stock options to be decided from time to time and a variable pay subject to a maximum of 25% of salary drawn during the year.
Besides, loan facilities would be provided to her at a rate applicable to other employees, with a total eligibility cap of Rs51 lakh. This includes up to Rs30 lakh as housing loan, Rs10 lakh for vehicle loan, Rs5 lakh as personal loan and Rs1 lakh as loan against NSE/mutual funds.
The proposed remuneration for Agarwal as deputy MD of the bank from 4 August, 2009 till 31 August 2010, adds up to over Rs1 crore in salary and allowances, besides various other benefits and perquisites. Agarwal would also be provided loans up to Rs45 lakh.