ICICI MD and Chairman, Chanda Kochhar received a 63% raise in her salary for fiscal 2016-17. She is reported to take a basic salary of Rs.2.66 crores besides Rs.2.2 crore performance bonus and Rs.2.43 crore as additional allowances and perquisites. She received a total remuneration of Rs.7.8 crore by the end of March 2017.
According to Lenders’ Annual report, she has topped the list of bankers in India’s big private sector bank by receiving a total remuneration of Rs.7.8 crores in FY17. During the previous fiscal 2015-16, her remuneration dropped to Rs.4.8 crores since she decided to give up her performance bonus owing to a tumble in bank’s net profit in FY16. In 2016-17, ICICI displayed a 0.8% increase in the net profit. Rana Kapoor, Founder, MD and CEO at Yes Bank is second to Chanda Kochhar in the list to take home Rs 6.8 crore as salary in 2016-17. Anshul Lodha, Director at Michael Page was quoted in media saying, “Every year when a bank does well, most of the compensation hike for the top management is in the form of ESOPs (employee stock options). For other employees in private sector banks, the average pay hike is not more than 6-8%”
However, this development isn’t alike in public sector banks. SBI Chairman, Arundhati Bhattacharya reported taking home Rs.28.96 lakh in the FY17. Raghuram Rajan last year in August was quoted in media stating that this disparity in compensation makes it difficult to attract top talent, especially a lateral entry.