Archive · 7 Aug 2025
India: Sharp Divide in Promoter Salaries Highlights Corporate Disparities
Some bosses of big Indian companies (promoters) get paid a lot, while others don't get a salary at all.
However, most of them make more money from dividends.
Company rules say how much they can get paid.
Some shareholders think some bosses get paid too much and complain.
One expert says promoters should get paid like the top person in their company and get most of their money from dividends.
Sometimes, shareholders vote to change the pay of company bosses if they think it's too much.
Some Indian promoters earn crores, while others take no salary.
Most promoters earn more through dividends than direct pay.
Promoter compensation in India is governed by the Companies Act, 2013 and SEBI regulations.
Promoter CEOs earned a higher median and average salary compared to professional CEOs in FY24.
Shareholders have challenged excessive promoter compensation in some cases.
- Who
- Promoters of Nifty 50 companies.
- What
- A report reveals disparities in promoter salaries in India.
- When
- FY24 is referenced for data, and the Companies Act, 2013 is mentioned.
- Where
- India.
- Why
- To highlight the pay differences and implications for corporate governance.
Shareholder Concerns
Corporate Governance
Promoter Pay Scale
Shareholder Concerns
Excessive promoter pay can be viewed as exploitation and out of sync with other executives, leading to conflicts of interest
Corporate Governance
Promoter compensation should be performance-linked, benchmarked, and evaluated in the context of long-term shareholder returns
- Highest Paid Promoter (FY24)
- Pawan Munjal (Hero MotoCorp) ₹109.4 crore
- Highest Paid Executive (non-family) vs. Promoter
- Significant differences exist in multiple companies
- Median Promoter CEO Salary (FY24)
- ₹11.9 crore
- Average Promoter CEO Salary (FY24)
- ₹16.7 crore
- Dividend Income Example (FY24)
- Mukesh Ambani (Reliance) ₹3,655 crore
- Salary governance
- If annual remuneration exceeds ₹5 crore or 2.5% of a company’s net profits, whichever is higher, it requires shareholder approval