Gautam Adani Receives Rs 9.26 Crore Salary in FY24; Lower Than His Executives, Industry Peers

Gautam Adani, India’s second richest individual, reported a total remuneration of Rs 9.26 crore for the financial year ending March 31, 2024. This figure, which is relatively modest when compared to his industry counterparts and some key executives within his own conglomerate, was detailed in the annual reports of the ten publicly listed companies under his extensive ports-to-energy business empire.

Detailed Breakdown of Adani’s Salary

Gautam Adani, aged 61, drew his remuneration from only two out of the ten companies in his group:

Adani Enterprises Ltd (AEL)

• Salary and Perquisites: Rs 2.19 crore
• Allowances and Other Benefits: Rs 27 lakh
• Total Remuneration: Rs 2.46 crore

This represents a 3% increase from the previous financial year, as per the AEL’s 2023-24 annual report.

Adani Ports and SEZ Ltd (APSEZ)

• Total Remuneration: Rs 6.8 crore

Despite being one of the richest individuals in India, Adani’s salary is significantly lower than that of leaders of other large family-owned conglomerates in the country.

For comparison:

• Mukesh Ambani, Chairman and Managing Director of Reliance Industries Limited (RIL), has been foregoing his entire salary since the COVID-19 outbreak. Prior to this, he had capped his remuneration at Rs 15 crore.
• Sunil Bharti Mittal, a telecom magnate, earned Rs 16.7 crore in 2022-23.
• Rajiv Bajaj received Rs 53.7 crore.
• Pawan Munjal earned Rs 80 crore.
• S N Subrahmanyan, Chairman of L&T, and Salil S Parekh, CEO of Infosys, also earn significantly more than Adani.

Impact of Hindenburg Report on Adani’s Wealth

Gautam Adani ascended to the position of the richest Asian in 2022. However, this position was short-lived following a critical report by US short-seller Hindenburg Research, which led to a substantial loss of almost $150 billion in market value for Adani Group stocks at their lowest point last year. As of now, Gautam Adani ranks 14th on the global list of the world’s richest individuals.

Remuneration of Adani’s Family Members

• Rajesh Adani (Younger Brother):
  • Total Remuneration: Rs 8.37 crore
  • Commission on Profit from AEL: Rs 4.71 crore
• Pranav Adani (Nephew):
  • Total Remuneration: Rs 6.46 crore
  • Commission on Profit: Rs 4.5 crore
• Karan Adani (Son):
  • Total Remuneration from APSEZ: Rs 3.9 crore

It is notable that Gautam Adani did not draw any commission from AEL but received Rs 5 crore from APSEZ, including Rs 1.8 crore salary and Rs 5 crore commission payable in the fiscal year 2024-25, as indicated in the company’s annual report.

Compensation of Other Key Executives

• Vinay Prakash (Key Executive and Director on AEL Board):
  • Total Remuneration: Rs 89.37 crore
• Jugeshinder Singh (Group CFO):
  • Salary: Rs 9.45 crore
• Vneet S Jaain (CEO of Adani Green Energy Ltd):
  • Total Remuneration: Rs 15.25 crore
• Suresh P Manglani (CEO of Adani Total Gas Ltd – ATGL):
  • Total Remuneration: Rs 6.88 crore
• Angshu Mallick (CEO of Adani Wilmar):
  • Total Remuneration: Rs 5.15 crore

Employee Remuneration Overview

The AEL annual report highlighted that the average remuneration increase for employees, excluding key managerial personnel (KMPs), was 12%. For KMPs, the increase was slightly higher at 5.37%.

This comprehensive breakdown illustrates the relatively modest compensation received by Gautam Adani in contrast to his peers and underscores the significant contributions of other key executives within the Adani Group.