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AHMEDABAD: After taking big pay cuts last year, top honchos of leading companies in Gujarat have taken home almost double the salaries in 2012-13.
Denim man Sanjay Lalbhai took home a package of Rs 4.6 crore in 2012-13, almost double than Rs 2.8 crore he had drawn in 2011-12. Similarly, promoter of Gujarat's largest corporate house, Gautam Adani, hiked his package to Rs 4.29 crore — Adani had joined the list of corporate leaders who did not take an increment in 2011-12 and took home a salary of Rs 3.77 crore.
Sudhir Mehta, chairman of pharma major Torrent Pharmaceuticals, has also seen a rise in his salary this year to Rs 5 crore from Rs 3 crore in 2011-12 and Rs 2.5 crore in 2010-11. Brother Samir Mehta, managing director of Torrent Pharmaceuticals, earned Rs 7.52 crore in 2012-13 against Rs 5 crore in 2011-12.
Torrent Power's whole-time director Markand Bhatt's salary has increased to Rs 15.67 crore in 2012-13 from Rs 12.53 crore in 2011-12.
Janmejay Vyas, chairman and managing director of Dishman Pharmaceuticals & Chemicals who had drawn a salary of Rs 3.5 crore in 2011-12, has taken home Rs 5 crore during 2012-13. The salary of another leading drugmaker, Zydus Cadila's chairman and managing director, Pankaj Patel, was not available.
In 2011-12, the economic downturn had prompted promoters of leading companies in Gujarat to slash their salaries, which include commission, by up to 50% or refrain from taking hikes.
Analysts say typically the targets of CEOs and managing directors are different from other employees, who get increment when they or the organization perform in suitable market conditions.
"Sometimes, the board of directors decides that if the CEO or CMD has done his job, which may not reflect in balance sheet in short term, they deserve a higher salary. In such cases, profitability can be lower but if market share is maintained, then salary hikes happen. Also, for promoter-driven companies, where there are less dividends paid out, top corporate get more money in the form of salary to cover their personal expenses in poor market conditions," said analyst Dhruv Desai.
Denim man Sanjay Lalbhai took home a package of Rs 4.6 crore in 2012-13, almost double than Rs 2.8 crore he had drawn in 2011-12. Similarly, promoter of Gujarat's largest corporate house, Gautam Adani, hiked his package to Rs 4.29 crore — Adani had joined the list of corporate leaders who did not take an increment in 2011-12 and took home a salary of Rs 3.77 crore.
Sudhir Mehta, chairman of pharma major Torrent Pharmaceuticals, has also seen a rise in his salary this year to Rs 5 crore from Rs 3 crore in 2011-12 and Rs 2.5 crore in 2010-11. Brother Samir Mehta, managing director of Torrent Pharmaceuticals, earned Rs 7.52 crore in 2012-13 against Rs 5 crore in 2011-12.
Torrent Power's whole-time director Markand Bhatt's salary has increased to Rs 15.67 crore in 2012-13 from Rs 12.53 crore in 2011-12.
Janmejay Vyas, chairman and managing director of Dishman Pharmaceuticals & Chemicals who had drawn a salary of Rs 3.5 crore in 2011-12, has taken home Rs 5 crore during 2012-13. The salary of another leading drugmaker, Zydus Cadila's chairman and managing director, Pankaj Patel, was not available.
In 2011-12, the economic downturn had prompted promoters of leading companies in Gujarat to slash their salaries, which include commission, by up to 50% or refrain from taking hikes.
Analysts say typically the targets of CEOs and managing directors are different from other employees, who get increment when they or the organization perform in suitable market conditions.
"Sometimes, the board of directors decides that if the CEO or CMD has done his job, which may not reflect in balance sheet in short term, they deserve a higher salary. In such cases, profitability can be lower but if market share is maintained, then salary hikes happen. Also, for promoter-driven companies, where there are less dividends paid out, top corporate get more money in the form of salary to cover their personal expenses in poor market conditions," said analyst Dhruv Desai.
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