Mumbai: ICICI Bank Ltd managing director (MD) and chief executive officer (CEO) Chanda Kochhar got a 63% raise in remuneration in fiscal 2016-17, topping the list of bankers at India’s big private sector banks, according to lenders’ annual reports.
Kochhar’s total remuneration rose to Rs7.8 crore at the end of March 2017 and included a performance bonus of Rs2.2 crore and a 47% jump in allowances.
During the previous fiscal year, her annual remuneration fell to Rs4.8 crore after she decided to forgo her performance bonus following a 13% fall in the bank’s net profit in 2015-16. It was the same year the Reserve Bank of India completed an asset quality review exercise, forcing banks to make higher provisions for bad loans. In 2016-17, ICICI Bank posted a 0.8% increase in net profit.
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Remuneration typically includes gross salary, allowances and perquisites, provident fund, superannuation allowances, gratuity and performance bonus. For ICICI Bank, remuneration also includes deferred performance bonus, which is paid over a multi-year period.
Yes Bank Ltd founder, MD and CEO Rana Kapoor got the highest raise after Kocchar. His annual remuneration increased 21% to Rs6.9 crore in fiscal year 2016-17.
Barring Kochhar and Kapoor, chiefs of other private sector banks saw single-digit growth in their total compensation package.
HDFC Bank Ltd MD Aditya Puri saw a modest 3.3% hike in annual remuneration to Rs10 crore as the bank’s net profit growth slowed to 18% in 2016-17. Axis Bank Ltd reported a 5% rise in MD and CEO Shikha Sharma’s remuneration following the bank’s dismal performance at the end of March 2017, with a 55% fall full-year net profit.
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“Every year when a bank does well, most of compensation hike for the top management is in the form of ESOPs (employee stock options). For other employees in private sector banks, the average pay hike is not more than 6-8%," said Anshul Lodha, director (financial services and legal), Michael Page.