Zerodha's Nithin Kamath clarifies on salary, says did not anticipate so 'much attention'
1 min read . Updated: 30 May 2021, 12:01 PM IST
PremiumThe online brokerage firm also aims to roll out a buyback plan for its employees worth ₹200 crore.
Zerodha co-founder Nithin Kamath Sunday clarified on Twitter regarding the news reports that he will draw a salary of up to ₹100 crore every year, according to a special resolution passed by the stock brokerage firm’s board. Nithin Kamath said that the approval may not essentially mean that the founders would draw out ₹100 crore as final salaries from the company.
"Firstly the reported figure isn’t the actual salary being drawn. This is an enabling resolution that allows us as working promoters to draw salaries up to the number in case of liquidity requirements. Didn’t anticipate that this would get this much attention," he said.
Nithin said that Zerodha is a private company and he is under no obligation to clarify, "but we thought maybe we should, as there are folks who are misinterpreting this," he added.
The online brokerage firm also aims to roll out a buyback plan for its employees worth ₹200 crore.
"Broking is riskier because most revenue comes from active traders with leveraged positions that carry risk, one black swan event can cause the business large losses. Also due to changing regulations, any of which can potentially impact profitability significantly," Nithin said.
