Reliance Industries chairman Dhirubhai Ambani, whose annual earnings are pegged at Rs 2.27 crore, ranks among the highest-paid CEOs of Indian corporates in 1998-99. The "richest Indian", Wipro chairman and managing director Azim Premji, was placed many notches lower down the ladder with a "modest" annual income of Rs 60.96 lakh.

The only other CEO (apart from the Ambanis) whose annual earnings crossed the Rs 2-crore mark was former chairman of pharma major Ranbaxy, the late Parvinder Singh.

ITC, Castrol, Gujarat Ambuja Cements and Escorts paid their CEOs over Rs 1 crore during 1998-99 while the chiefs of FMCG major Hindustan Lever, engineering giantLarsen & Toubro and paints and chemicals major ICI India all got less than Rs 1 crore towards remuneration. Godrej Soaps managing director Adi Godrej was lowest in the ladder with an annual income of just Rs 11 lakh.

The latest to join the bandgwagon of highly-paid chief executives is the CEO of term-lending institution ICICI, KV Kamath. The institution is seeking shareholders' approval during its forthcoming annual general meeting to pay a monthly salary of Rs 2-4 lakh to Kamath and an equal amount in the form of bonus based on performance. Kamath, along with ICICI joint managing director Lalita D Gupte and deputy managing director SH Bhojani will also get over one lakh ICICI shares each under the proposed stock option scheme.

Ambani's monthly package of Rs 18.92 lakh includes a salary of Rs 5 lakh and Rs 13.92 lakh worth of commission. Vice-chairman and managing director Mukesh Ambani and managing director Anil Ambani received a packet of Rs 1.82 crore each during the year. The monthly packet of Rs15.17 lakh of both includes a salary of Rs 4 lakh and Rs 11.17 lakh worth of commission. RIL posted a net profit of Rs 1,703 crore in fiscal 1999.

Premji's monthly packet of Rs 5.08 lakh included a salary of Rs 1.75 lakh, with the rest coming in the form of commissions. The company posted a net profit of Rs 170 crore during the year.

The late Parvinder Singh of Ranbaxy got an annual pay of Rs 2.18 crore during 1998-99. His monthly packet of Rs 18.18 lakh comprised Rs 6 lakh of salary and Rs 12.18 lakh as commission. The company's net profit stood at Rs 117 crore during 1998-99. Ranbaxy CEO and managing director DS Brar's annual pay packet was estimated at Rs 1.81 crore.

ITC chairman YC Deveshwar and Castrol managing director RA Savoor received an identical annual packet last year: Rs 1.08 crore. Deveshwar's monthly packet includes a salary of Rs 6 lakh and Rs 3 lakh worth of commission. In case of Savoor, it was just the reverse with salary pegged at Rs 3 lakh and commissions at Rs 6 lakh. ITC recordeda net profit of Rs 623 crore in fiscal 1999 while Castrol's net profit stood at Rs 178 crore.

Gujarat Ambuja managing director NS Sekhsaria got a higher annual pay packet of Rs 1.43 crore during 1998-99. His monthly packet of Rs 11.97 lakh consisted of Rs 1 lakh of salary and Rs 10.97 lakh worth of commissions.

Escorts chairman and managing director Rajan Nanda is another CEO whose annual earnings were pegged at over Rs 1 crore. His annual packet of Rs 1.56 crore included a monthly salary of Rs 4 lakh and commissions worth Rs 9 lakh. The company posted a net profit of Rs 178 crore during the year.

L&T chief executive AM Nayak received a relatively lower annual pay packet of Rs 65.04 lakh in fiscal 1999. His monthly packet of Rs 5.42 lakh included Rs 1.50 lakh as salary and Rs 5.42 lakh of commission. The company recorded a net profit of Rs 470 crore during the year.

Another high-profile CEO who drew a sub-Rs 1 crore annual packet last year is HLL chairman Keki Dadiseth. His annual packet in 1998-99was pegged at Rs 77.16 lakh which included a monthly salary of Rs 2.60 lakh and Rs 3.83 lakh of commissions. HLL registered a net profit of Rs 808 crore in fiscal 1999.

ICI India managing director Aditya Narain's annual earnings were a shade lower than Dadiseth's at Rs 72 lakh which included Rs 3 lakh of salary and an equal amount of commission per month.

Godrej Soaps MD Adi Godrej received an annual packet of Rs 11 lakh only. The entire chunk was in the form of salary as the company did not pay any commission to Godrej since it incurred losses during the year.

Insight

A healthy trend

The trend in corporate India of top executives being better paid is a healthy one and reflects the profitable reality of these companies. Corporate executives create all the wealth within the confines of their respective companies, but under the earlier Companies Act restrictions could not reward themselves adequately.

This led to a lot of unhealthy practices of rewarding themselves by underhand means.Besides, when executives decide to reward themselves openly, they are also open to shareholder scrutiny. But shareholders should ensure that this trend should be linked to more openness and transparency on the part of the companies concerned.

Aaron Chaze