Uday Kotak, the Managing Director and CEO of Kotak Mahindra Bank, grabbed attention when he chose to accept a symbolic salary of just Rs 1 for the fiscal year 2022-23, as stated in the bank's annual report.
As of March 31, 2023, Uday Kotak, together with his family members and business interests, holds an impressive stake of 25.95% in the equity share capital of Kotak Mahindra Bank. Additionally, they possess 17.26% of the paid-up share capital of the bank.
According to Kotak Mahindra Bank's annual report, Deepak Gupta, the joint Managing Director, received an annual salary of Rs 5.43 crore. This compensation package includes a basic pay of Rs 2.74 crore and an annual incentive of Rs 1.18 crore.
Other full-time directors at the company also received substantial compensation packages. KVS Manian's package amounted to Rs 5.3 crore. Gaurang Shah, who has now retired, received a generous sum of Rs 5.03 crore, which includes retirement benefits. Shanti Ekambaram received a notable total package of Rs 2.02 crore.
Amidst the COVID-19 pandemic, the senior management of Kotak Mahindra Bank had taken the initiative to cut their salaries by 15%. In alignment with this measure, CEO Uday Kotak made a personal decision to forego his salary entirely.
In a letter directed to the bank's shareholders, Uday Kotak conveyed his dedication to maintaining a significant role within the organization despite stepping down from his full-time position. He articulated, "In the future, my role will be that of a non-executive board governance member and a strategic shareholder, with a steadfast focus on nurturing a world-class organization for the long term."
Back in February, Bloomberg revealed that Kotak Mahindra Bank's board had enlisted the consulting firm Egon Zander to aid in the search for a new CEO who would take over from the esteemed billionaire founder, Uday Kotak.
Uday Kotak has been at the helm of the bank since its establishment in 1985 as a non-banking financial institution, which later evolved into a commercial lender in 2003. With an estimated net worth of approximately $13.4 billion, according to the Bloomberg Billionaires Index, Uday Kotak's significant financial stature is well-established.