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.