HDFC Bank’s Jagdishan highest paid bank CEO in FY23 with Rs 10.55 crore pay
As per the disclosures made in annual reports, Sashidhar Jagdishan, the CEO of HDFC Bank, emerged as the highest-paid bank chief executive in the financial year 2022-23. He grossed over Rs 10.55 crore in overall pay during that period.
Jagdishan’s colleague, Kaizad Bharucha, who serves as the Deputy Managing Director of HDFC Bank, earned Rs 10 crore for the same fiscal year. With this compensation, Kaizad Bharucha is likely to be the second-highest grossing banker in the country for FY23.
It’s worth noting that executive remuneration in the banking sector is often influenced by various factors, including the bank’s performance, market conditions, individual contributions, and other relevant factors. The remuneration figures mentioned above reflect the compensation received by these top executives during the specified fiscal year and may be subject to change in subsequent years based on company performance and other considerations.
As per the disclosed information, among bank CEOs, Amitabh Chaudhry, the CEO of Axis Bank, received a payout of Rs 9.75 crore in the financial year 2022-23, making it the second-highest in terms of overall pay among bank chief executives.
Sandeep Bakhshi, the CEO of ICICI Bank, which is a larger rival to Axis Bank, closely followed with a payout of Rs 9.60 crore for the same fiscal year. Bakhshi’s compensation also ranked among the top bank CEOs in the country for FY23.
Uday Kotak, the founder and promoter of Kotak Mahindra Bank, continued his gesture of taking a symbolic remuneration of Re 1 in the financial year 2022-23. This decision was initially started during the pandemic and has been upheld even in FY23, showcasing his commitment to the bank and its stakeholders.
In contrast to many other banks that are facing attrition issues in the banking sector, Kotak Mahindra Bank stood out with its compensation policy. The bank reported a 16.97% increase in the average remuneration of its staff members, excluding managerial talent, for the specified fiscal year. This increase indicates the bank’s dedication to rewarding and retaining its workforce amid challenging market conditions and the competitive talent landscape.
Uday Kotak’s decision to take a nominal salary and the bank’s approach to incentivizing its employees reflect their focus on maintaining financial prudence and employee motivation while navigating the banking industry’s evolving challenges.
You have provided an accurate summary of the information related to Uday Kotak’s remuneration and Kotak Mahindra Bank’s compensation policy for the financial year 2022-23. Uday Kotak’s gesture of taking a token remuneration of Re 1 demonstrates his commitment to the bank and its stakeholders, especially during challenging times such as the pandemic.
The fact that Kotak Mahindra Bank reported a 16.97% increase in the average remuneration of its staff members (excluding managerial talent) indicates the bank’s efforts to reward and retain its employees in a competitive talent landscape. This approach sets the bank apart from others in the industry that are grappling with attrition issues.
Uday Kotak’s decision to maintain a nominal salary aligns with the bank’s focus on financial prudence and employee motivation, highlighting their dedication to navigating the evolving challenges in the banking sector. This approach showcases responsible leadership and a commitment to the well-being of the bank’s workforce and overall business.
The details provided in the annual report of HDFC Bank show that Sashidhar Jagdishan’s package for the financial year 2022-23 included the following components:
1. Basic Salary: Rs 2.82 crore
2. Allowances and Perquisites: Rs 3.31 crore
3. Provident Fund: Rs 33.92 lakh
4. Performance Bonus: Rs 3.63 crore
When considering the percentage hike perspective, Jagdishan’s reported remuneration for FY22 grew by 62% over the remuneration he received in FY21, which was Rs 6.51 crore.
For comparison, the overall remuneration of ICICI Bank CEO Sandeep Bakhshi increased by over 35%, while Amitabh Chaudhry’s remuneration at Axis Bank was nearly 28% higher in FY23 compared to the previous fiscal year.
The significant percentage increase in the remuneration of these CEOs indicates their contributions and the bank’s performance during the financial year 2022-23. These remuneration figures are disclosed in the respective banks’ annual reports and reflect the compensation received by the CEOs for their roles and responsibilities in leading these financial institutions.
The remuneration figures reported in FY23 may include arrears or wage revisions for the financial year 2021-22. In some cases, the RBI (Reserve Bank of India) may approve wage revisions for top management after the completion of the year. Therefore, the disclosed hikes in remuneration for key management personnel in the banking sector may be lower when considering the actual increase in compensation for FY23.
Wage revisions or adjustments in remuneration for the previous fiscal year might be implemented in the subsequent year, leading to variations in the reported remuneration figures. This practice is common in many organizations, including banks, where adjustments to salaries or bonuses are made retroactively.
It’s essential to consider such factors and the timing of wage revisions when analyzing the reported remuneration for key management personnel in the banking sector. These figures are disclosed in the banks’ annual reports and regulatory filings, providing transparency about the compensation packages for their top executives and key employees.
