New Delhi: Do you think the economy is going through tough times, with a lot of people losing jobs? Think twice.
Chanda Kochhar, the head of country’s largest private sector lender ICICI Bank, has drawn Rs 7.85 crore as total remuneration in 2016-17, a jump of over nearly 64 per cent from a year ago.
ICICI Bank MD & CEO Chanda Kochhar’s basic salary increased over 15 per cent to Rs 2.67 crore during the fiscal ended March 2017, as per bank’s annual report. Calculated on daily basis, her cost to the company was Rs 2.18 lakh.
During the year, she took home performance bonus of Rs 2.2 crore. However, the bank had not not given performance incentive in 2015-16 due to weak financial status. Her total cost to the company was over Rs 4.79 crore in 2015-16 and basic salary was Rs 2.32 crore. The total remuneration included perquisites as well as retiral benefits.
Furnished accommodation, gas, electricity, water and furnishing, club fees, group insurance, use of car and telephone at resident, reimbursement and leave travel concession, provident funds are among the major heads of perquisites.
The monthly basic salary for Kochhar will be within the range of Rs 1,350,000-Rs 2,600,000, said the annual report 2016-17. In her message, Kochhar said ICICI Bank is focused on capitalising on growth opportunities. At the same time, the bank is taking steps to address challenges in environment.
“Our large size, capital base, robust funding profile, extensive distribution network, diversified portfolio, presence across the financial services sector and leadership in technology, position us very well to leverage the growth opportunities across the economy,” Kochhar said.
CEO compensation has been a key issue with PSBs as there is huge discrepancy with private sector. For instance, SBI chairman Arundhati Bhattacharya’s annual compensation for 2015-16, according to the bank’s annual report, was Rs 31.1 lakh (including incentives of Rs 7 lakh and arrears of Rs 3 lakh) compared to Rs 9.73 crore package of Aditya Puri, CEO of HDFC Bank.