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As part of the proposed changes in its top management, ICICI Bank's next CEO and Managing Director would get a salary of up to Rs 13.5 lakh per month -- from up to Rs 10.5 lakh per month currently.
At the same time, the bank's current CEO and MD K V Kamath would get a full-year salary of Rs 20 lakh, after he becomes non-executive chairman from May 1.
Currently, the bank has fixed Kochhar's monthly salary as its Joint MD and Chief Financial Officer at up to Rs 10.5 lakh, giving her a pay hike of Rs three lakh per month, or Rs 36 lakh per annum.
Besides the salary, both Kamath and Kochhar are entitled to various other benefits.
In a notice to shareholders seeking their approval for the appointment and remuneration for Kochhar and Kamath in their new roles, the bank on Tuesday proposed that Kamath be paid a remuneration of Rs 20 lakh per annum as its non-executive chairman for a period of five years from May 1, 2009 to April 30, 2014.
The bank further proposed that Kochhar be appointed as its CEO and MD from May 1, 2009 till March 31, 2014, with a salary in the range of Rs 7-13.5 lakh.
Currently, as the bank's Joint MD and CFO, Kochhar's salary is fixed in the range of Rs 4-10.5 lakh.
The current term of Kochhar as Joint MD and CFO expires on March 31, which the bank has proposed to extend for a period of one month between April 1 to April 30, 2009, at the existing remuneration terms.
Besides, Kochhar would continue to be entitled to bonus payments, house rent allowance of Rs one lakh if she was not provided with a company-owned accommodation and other perquisites.
Kamath would also be entitled to ‘payment of sitting fees, maintaining of a Chairman's office at the bank's expenses, bearing of expenses by the bank for travel on official visits and participation in various forums (both in India and abroad) as Chairman of the Bank and bearing of travel/halting/other expenses and allowances by the bank for attending to his duties as Chairman of the Bank.’
Kochhar's proposed salary range is same as the one for Kamath as CEO and MD in the last fiscal ended March 31, 2008.
However, the overall pay packages for both Kamath and Kochhar were much bigger than their salary packages.
According to the bank's latest annual report, Kamath was given a gross remuneration of Rs 2,78,74,699 (over Rs 2.78 crore) in the fiscal ended March 31, 2008. In the same period, Kochhar's gross remuneration was Rs 1,55,57,244 (over Rs 1.55 crore).
Incidentally, Kochhar was third-highest paid executive at ICICI Bank in the last fiscal after Kamath and the bank's executive director Madhavi Puri Buch (gross pay of Rs 1,60,80,225 for the year). Buch's monthly salary range in the last fiscal stood at Rs 3-10 lakh.
The net remunerations for both Kamath and Kochhar stood at Rs 1,96,66,530 and Rs 1,10,25,983, respectively.
The shareholders have been asked to vote on the proposals entailing appointments and remunerations for Kamath and Kochhar through postal ballot by February 11, the bank said, adding that the results would be announced on February 13.
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One of the most useless bank in INdia Today. They are just robbin gthe comman people , who are illiterate by giving them vehicle loans, and asking them to open account with icici bank. This tactit is only used to collect bouncing charges and increase banks revenue.
Is it not time to have SAY ON PAY by the shareholders as is being demanded by the President Elect of US, Barrack Obama. We always compare the performance of the private sector banks with that of the public sector banks. So why cant we say that the private sector pay should be not more than 100% of the public sector banks. In that case how much Ms Kocchar will be paid.Let us also compare how much the largest bank of the country is paying its top executive. Should it not be some resembelence of the total business of its peer groups. Why this profit be shared with the shareholders rather than only with the exectives. Let it also be shared with its clients by reduction of interest on credits and higher interest for the depositors.It is high time some restrictions on executive salary is clamped
When it comes to reducing interest rates even after RBI has reduced the repo rates and CRR SLR,ICICI and HDFC have just reduced interest rates by just 50 basis points and that too after a long gap after RBI reducing the rates. Cant the bank restrain from increasing the PERKS in Crores of ruppes till the Customers get the benefit in interest rates. Is it that they want to pay more to these executives as they are afraid the bank will soon go bankrupt as NPA s will increase on account of heavy interest burden and the executives will be left with nothing to take
When an average Indian earns less than Rs.70 per day it is shameless for ICICI Bank to pay such ridiculous salaries. Indians are losing jobs
ICICI Bank paying Rs13.5lakhs to its CEO
They are lucky
Nationalized bank started giving better service and extended service hours ONLY after Private Banks came into existence. Thanks private banks for the good work done!!!. They deserve better pay too
As the saying goes ICICI is robbing the common man to pay its super boss and fat headed executives.They have lost their credibility and sooner they close their operation it is better for the common man.people were taken for a ride by this useless bank by promising fortune thru their various investment instruments.I will never recommend any one to invest in this bank as myself has withdrwn my frugal savings from this institution and quiet happy with Canara bank.My sincere request to many of the readers of IE as well to be very careful of ICICI and if they have any shares in ICICI ,pls sell and invest in anywhere else.
ICICI is a bank that has lost its trust among it's customers lately due to their actions. They raise the loan rates even when RBI is cutting rates. But they are facing lot of difficulties in reducing. This is one stupid institution which asks me to give Power of Attorney to someone to discuss on my home loan interest rates. These are the type of tactics they play. I wouldn't recommend ICICI bank to anyone for any loans. I have my salary a/c in ICICI but planning to open a SBI a/c to immediately transfer my salary as I get it. This is becoz I'm completely pissed off with ICICI bank.
ICICI is bank is not fair from operations perspective. They raise the loan rates even when RBI is cutting rates. But they are facing lot of difficulties in reducing. This is one stupid institution which asks me to give Power of Attorney to someone to discuss on my home loan interest rates. These are the type of tactics they play. I wouldn't recommend ICICI bank to anyone for any loans. I have my salary a/c in ICICI but planning to open a SBI a/c to immediately transfer my salary as I get it. This is becoz I'm completely pissed off with ICICI bank.
ICICI is the worst bank, they have failed miserably in customer care service. I would say SBI, PNB, HDFC and other Indian banks are far ahead of ICICI. ICICI is playing with the customer's deposit, which is no more safe banking with ICICI. I have a case where 26000/- was debited and there is a follow-up with ICICI for the last two years and they have failed to recitify this error. In fact they have accepted that its a mistake on their part but even after repeated reminders for the last two years they have failed to action on this.